China continues to hold supremacy in top 50 APAC companies by market cap in Q1 2021, finds GlobalData

China has dominated the list of top 50 Asia-Pacific (APAC) companies in terms of the market capitalization during the first quarter (Q1) of 2021, reveals GlobalData, a leading data and analytics company.

The aggregate market capitalization of the 50 APAC companies stood at US$8,608.4bn at the end of Q1 2021, up by 3.8% over the US$8,294.8bn in Q4 2020, of which 28 Chinese companies accounted for 60% of the aggregate market cap.

There were 12 Chinese companies that reported decline in their market cap. The most notable were the Pinduoduo.com, Xiaomi Corp, and Foshan Haitian Flavoring Food, whose market values declined over 20% over the previous quarter.

Xiaomi’s market cap declined because of sanctions by the US authorities. Stepping down of its Founder and Chairman and increased losses impacted Pinduoduo.

There were three companies — Postal Savings Bank of China (PSBC), Recruit Holdings (Recruit), and China Merchants Bank (CMB) — whose values grew by over 15%.

PSBC benefitted from the growth in proportion of high yield earning assets, optimization of its asset structure, and steady rise in the income from electronic payment business. CMB reported rise in interest-earning assets and agency service fees due to active financial markets. Recruit’s performance was driven by sustained rise in sponsored job advertising, screening solutions, candidate sourcing, and employer branding products.

Murthy Grandhi, Company Profiles Analyst at GlobalData, comments: “The 18.3% rise in China’s GDP during Q1 2021 showcases its economic recovery has been quicker than that of other countries on the back of rising domestic and foreign demand. China was able to effectively control the COVID-19 pandemic earlier compared to the other global economies and emerged as a manufacturing center for personal protective equipment such as face masks, sanitizers, and work-from-home essentials such as laptops and computer accessories.”

With 17 companies, technology sector dominated the top list. China topped the list with seven companies. China Mobile reported a growth of 14.9% in market cap on the back of its effort to enhance the 5G+ plan and rise in income from data services. Hangzhou Hikvision Digital Technology surged 14.4% owing to rise in income from smart home business, whereas Tencent Holdings’ 7.9% growth was owing to rise in income form online gaming and FinTech and business services.

Most of the companies in the financial service sector in the top 50 were also from China, with nine companies out of the 12. The other major sectors featured in the top 50 APAC companies include retail, oil and gas, and consumer.

Among the remaining 22 non-Chinese companies, major companies include Taiwan Semiconductor Manufacturing, SoftBank Group, and SK Hynix.

The list also includes two new IPO entrants, China-based Beijing Kuaishou Technology Ltd, a social platform developer; and South Korea based e-commerce company, Coupang Inc.

Mr. Grandhi concludes: “Despite the US sanctions on Chinese firms and weakening bilateral relations with the neighbouring countries, China’s export-driven economy helps in continuing its dominance in the global trade, which will place China ahead of other countries in the region.”

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