More than 4000 listed companies with the second largest market value in the world
Since the 13th five year plan, the number of Listed Companies in Shanghai and Shenzhen stock markets has crossed 3000 and 4000. Compared with the progress of 1000 listed companies in the early 10 years of the establishment of the capital market, the speed of A-share expansion has increased significantly, and the capital market has become increasingly prosperous.
This year, with the market expansion brought about by the implementation of the registration system, the latest market value of Shanghai and Shenzhen stock markets has reached 78 trillion, 16 times higher than that at the end of 2000, with an average annual growth rate of 15% in the past 20 years, and the market value has increased significantly.
At the end of 2014, the market value of Shanghai and Shenzhen exchanges jumped to the second place in the world for the first time. At present, the total market value of Shanghai and Shenzhen stock exchanges is nearly 8 billion yuan, accounting for 11% of the total market value of major stock exchanges in the world, and 71% higher than that of Tokyo Stock Exchange, the third largest stock exchange in the world.
Listed companies are the backbone of Chinas economy
In 2019, the total operating revenue of Listed Companies in Shanghai and Shenzhen stock exchanges reached 50.47 trillion yuan, accounting for 50% of the national GDP for the first time. According to the data of China Association of listed companies, the tax revenue generated by listed companies accounts for 30% of the total corporate tax revenue, and the profits of Listed Companies in the real economy account for 40% of the profits of Industrial Enterprises above designated size. Listed companies have become the pillar force of Chinas economy.
*** Among them, there are 330 listed in Shanghai and Shenzhen stock exchanges, accounting for 66%. The capital market plays an important role in promoting the core competitiveness of private enterprises.
In 2020, a total of 124 Chinese companies (including Hong Kong and excluding Taiwan) will be listed in the Fortune Global 500, and the number of companies will surpass that of the United States for the first time. Among the 124 companies, more than 70 companies are listed or partially listed in A-share market, accounting for nearly 60%. High quality listed companies have become the China business card for Chinese enterprises to display to the outside world.
In the past 30 years, a large number of industry leaders have emerged in A-share listed companies, which have played a good exemplary and leading role in various fields. The listing of Sinopec in 2001 has achieved a breakthrough of zero value of A-share companies with 100 billion market value. At present, there are 118 companies with 100 billion market value in the two cities, including 33 financial companies and 28 companies in electronic, communication, computer, pharmaceutical and biological industries.
The rapid rise of technology and pharmaceutical industry leaders reflects the increasingly important role of capital market in supporting scientific and technological innovation, cultivating new driving forces for development, structural reform of service supply side and high-quality economic development.
Enhancement of scientific and technological attributes of listed companies
Since the 18th National Congress of the Communist Party of China, China has accelerated the process from a big country in science and technology to a powerful country in science and technology, with the continuous improvement of its comprehensive innovation strength, and the science and technology attribute of A-share listed companies has been strengthened year by year. With the launch of the science and technology innovation board and the formal implementation of the registration system of the gem, emerging technology industries ushered in a greater stage.
According to the statistics of securities times and data treasure, since 2020, 342 A-share companies have been listed on the stock market, raising a total of 423.8 billion yuan. The number of IPO companies and the amount of fund-raising have ranked among the top three in history. Among them, the science and technology innovation board raised 202.2 billion yuan, accounting for nearly half; the semiconductor industry raised nearly 80 billion yuan, ranking the highest in the subdivision industry. The new force of science and technology is coming fiercely.
From the perspective of market value distribution, the current market value of Listed Companies in information technology industry accounts for 15.39% of the total market value of a shares, which is more than 10% higher than that in 2010; meanwhile, the weight of shares of financial and energy companies in a shares has decreased by more than 10%, and the capital market has become the main battlefield of industrial upgrading in China.
However, it should also be noted that none of the top 10 listed companies in the a stock market is shortlisted. Among the top ten market value leaders in the US stock market, information technology enterprises account for half of the countrys top ten market value leading companies, and there is still a long way to go for A-share technological innovation.
Listed companies become bigger, better and stronger
Over the past 30 years, the overall performance of listed companies has maintained a stable growth, and its growth has surpassed the economic growth rate of the same period. With the opening of the value investment era, the investors of listed companies have gradually enhanced their sense of return. The amount of dividends paid by a shares has exceeded one trillion yuan for three consecutive years. The number of dividend paying companies accounts for 70%, and large-scale dividends have gradually become normal.
High quality development of listed companies
According to data bank statistics, the cumulative net profit of Listed Companies in Shanghai and Shenzhen stock markets in 2019 is 3.72 trillion, 59 times higher than 20 years ago and 2.5 times higher than 10 years ago. In recent 10 years, the compound annual growth rate of net profit of A-share company was 13.32%, which surpassed the GDP growth rate of the same period.
From the perspective of profit distribution, the polarization characteristics of A-share listed companies are obvious. Since 2005, the net profit of the companies in CSI 300 index has accounted for 86.5% of all a shares. From 2015 to 2017, with the opening of a new round of expansion cycle of A-share, the proportion of net profit fell to less than 80%. Since then, with the initial effect of supply side reform such as three deletions, one reduction and one subsidy, Chinas economy has shifted from high-speed growth stage to high-quality development stage, with the rise of core assets, and the characteristics of constant strength of the strong.
The growth of A-share companies is nearly 80% higher than that of US stocks in the same period
The Shanghai Shenzhen 300 index and the S & P 500 index respectively cover the most prominent market capitalization and representative listed companies in China and the United States, which are barometers of the overall trend of the Chinese and American markets. Through the comparison of the financial data of the constituent stocks of the two indexes, we can directly see the differences in profitability and growth of the listed companies in the two places.
According to data bank statistics, since 2011, the compound annual growth rate of net profit of Shanghai Shenzhen 300 index is 8.58%, nearly 80% higher than that of the same period of the S & P 500 index (4.82%). Except for a small decline in 2016, the net profit of the CSI 300 index has maintained a stable and positive growth in other years; in contrast, the net profit of the S & P 500 index has shown negative growth for many times, with the annual maximum decline of more than 10%, and the performance fluctuation is larger.
This year, the global economy has been hit by the epidemic and many of the worlds well-known enterprises have suffered greatly. According to the latest financial report data, in the first three quarters of this year, the net profit of the companies in the S & P 500 index fell 40% year on year, but it has not yet come out of the haze of the epidemic. During the same period, the performance of A-share companies has already hit the bottom and rebounded, and the net profit of the first three quarters has narrowed to 6.5%, while the net profit of Shanghai and Shenzhen 300 index has only declined by 7.6%.
The profitability of A-share companies is lower than that of US stocks
Although A-share companies have maintained a steady growth in net profit, there is still a gap between their profitability and that of the top companies in the United States. According to data bank statistics, in the past 10 years, the overall gross profit margin of the S & P 500 index has been maintained above 30%, reaching 35.33% in 2019; in 2019, the overall gross profit rate of the CSI 300 index is 19.04%, equivalent to half of the S & P 500 index.
In terms of Roe (return on net assets), the roe of CSI 300 index in the past 10 years has shown an overall downward trend, with only 10.51% in 2019; the roe of the S & P 500 index has increased year by year since 2015 and surpassed the CSI 300 index in 2016, with the latest roe of 15.35%. Compared with the two, the roe of the CSI 300 index is at a historical low, and the roe of the S & P 500 index is at a historical high.
The high profitability of the S & P 500 index is closely related to the market value distribution dominated by information technology. In 2019, the return on net assets of apple and Microsoft reached 55% and 42% respectively. The proportion of financial stocks in the top companies of a shares was high, which reduced the overall profitability of the index.
Over the past 30 years, A-share listed companies have accumulated dividends of more than 10 trillion yuan. In recent three years, the amount of cash dividends has continuously exceeded the trillion level, reaching 1.36 trillion yuan in 2019, a new record.
According to data bank statistics, in 2019, there were 2629 listed companies implementing cash dividends, accounting for 70% of the total number of listed companies at the end of the year, an increase of nearly 10% compared with 10 years ago. Among them, 1520 companies cash dividends accounted for no less than 30% of net profits, and large-scale dividends have gradually become normal.
In terms of industries, in 2019, the payment rate of food and beverage and mining industry exceeded 50% (only profit-making companies were counted), followed by textile and clothing, public utilities and chemical industry, which was more than 40%. The dividend rate of industries with stable performance and cash flow is relatively high.
The generosity of listed companies reflects the increasing awareness of shareholders return. With the opening of A-share high dividend era, A-share value investment concept will be further strengthened.
The dividend rate of a shares is gradually approaching the mature market
From 2017 to 2019, the total cumulative dividends of the companies in the CSI 300 index accounted for 32.05% of the net profit. Although this dividend strength has increased significantly, there is still a certain gap compared with the dividend payment rate of 40.87% of the S & P 500 index in the same period.
In overseas mature markets, high dividend and low volatility investment varieties have attracted much attention. In the A-share market, foreign institutions represented by QFII and luchengtong also prefer gaogaohong listed companies. From a long-term perspective, it is the general trend that A-share dividends are closer to developed markets. (fan Luyuan, databao)
Source: Securities Times editor in charge: Yang Bin_ NF4368