[ad_1]
TOKYO – The market capitalization rankings of East Asian companies are shaken. The combined market capitalization of China’s two largest information technology companies has fallen by $ 330 billion since the end of last year due to tightening regulations in Beijing. On the other hand, semiconductor manufacturers are in increasing demand and the decarbonization-related companies that China promotes, such as the producers of batteries for electric vehicles, are seeing their market values increase.
Nikkei ranked East Asian companies by market capitalization based on QUICK-FactSet data, seeing a sharp drop in the value of Chinese IT companies between late 2020 and August 30 due to antitrust fines and tightened regulations, such as listing restrictions, introduced by the Chinese government.
The top-ranked Tencent Holdings market capitalization was $ 574.3 billion on August 30, down about 20% from the end of 2020. Alibaba Group Holding fell from second to second. third place with a 30% drop in market value to $ 440.6 billion. its share price continued to return to post-listing lows.
Tencent and Alibaba have previously followed the US high-tech giants known collectively as GAFAM, such as Apple and Amazon.
China’s toughened regulations are also starting to affect luxury goods manufacturers. Luxury liquor producers Kweichow Moutai, ranked fifth, and Wuliangye Yibin, 20th, saw their market values fall by 20% and 30% respectively.
In contrast, chipmaking giant Taiwan Semiconductor Manufacturing Co. is quickly rising to the forefront. It temporarily overtook Tencent as the largest company in East Asia on August 18 due to falling stock prices of Chinese companies. Currently, TSMC closely follows Tencent with a market value of $ 564.4 billion, up more than 10% from the end of 2020.
TSMC’s rise in the rankings reflects not only declining stock prices of Chinese IT companies, but also its growth due to strong global demand for semiconductors.
Compared with market capitalization rankings of a decade ago, Chinese companies remain high, but there have been notable changes in their industries. The ranking at the end of 2010 was led by PetroChina and other energy companies, including CNOOC, as well as the Industrial and Commercial Bank of China and other financial institutions, reflecting China’s rapid economic growth.
While the ranking of energy companies is currently declining, Contemporary Amperex Technology Ltd. (CATL), the world’s largest automotive battery maker, and leading electric vehicle maker BYD Auto were ninth and 24th in the latest rankings, respectively.
EV companies in China receive preferential treatment in marketing and other operations from the government, which has pledged the world’s second-largest economy to achieve net zero carbon dioxide emissions by 2060.
As for the national and regional shares of the rankings of the top 200 companies by market capitalization, China had a share of more than 50% in 2021, compared to zero in 1990. Although it is not known to what extent the effects government regulations will spread, China’s share increase is believed in part to be attributable to activities such as the rise of startups, like the Meituan food delivery platform, to the top ranks of market capitalization.
South Korea, which held a 10% stake in the 2010s in large-cap manufacturers of electrical equipment and semiconductors, such as Samsung Electronics, has seen its ratio drop to 6% due to declines in value. mainstream business ventures, including steelmaker POSCO and auto parts maker Hyundai Mobis, despite hikes from IT companies like Naver, which has the free Line app under its wing, and Kakao, owner of the Kakao Talk messaging platform .
Japan has experienced a larger decline over the past decade than South Korea, from 38% to 27%. In 1990, when Japan’s economic “bubble” was at its peak, Japanese companies, led by large commercial banks, made up over 90% of the top 200 companies. Although they also lead the global market capitalization rankings, Toyota Motor is currently the only Japanese company in the top 10 in East Asia.
[ad_2]
Source link