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Shenzhen Stock Exchange’s Little Giants Show Strong Momentum in 2022

BusinessShenzhen Stock Exchange's Little Giants Show Strong Momentum in 2022

According to a report by China Securities Journal, the Shenzhen Stock Exchange’s A-share companies are on track to make significant profits in 2022. The report stated that 90% of the 848 companies on the exchange are expected to earn profits, while 60% of them will record year-on-year growth in net profit. The 763 companies expected to make profits on the exchange achieved a net profit of ¥691.41bn ($100.54bn), indicating an overall positive trend. Additionally, the companies are expected to earn an average net profit of ¥815m, with a three-year compound growth rate of 19.77%.

The journal noted that large enterprises dedicated to serving major national strategies have played an exemplary role in the Shenzhen A-share market. Also, “little giant” companies in niche industries with cutting-edge technologies have shown strong momentum in the stock market. The robust performance of those listed companies in the exchange hinged on continuous investment in R&D and innovation.

Among the notable companies in the exchange are Contemporary Amperex Technology, the world’s largest electric vehicle battery maker, and BYD, China’s largest NEV maker, which generated revenue of ¥328.59bn and ¥424.06bn, respectively, in 2022. Meanwhile, TCL Zhonghuan Semiconductor Co Ltd, a subsidiary of TCL that focuses on semiconductors and new energy, recorded ¥6.82bn in net profit in 2022, up 69% on a yearly basis.

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