The central government recently hosted a high-level symposium with Chinese top high-technology companies’ entrepreneurs in Beijing, showing strong support for private companies. President Xi Jinping delivered an important speech and highlighted that the central government’s policies for fostering private enterprises’ development remained unwavering. Chinese technology giants, including Tencent and Alibaba Group, have invented disruptive technologies in e-commerce and fintech, while other tech giants have made numerous breakthroughs in areas such as artificial intelligence, robotics, electric vehicles and renewable energy. The above-mentioned symposium is expected to boost market confidence and accentuate private enterprises’ roles in the country’s economic and technological development, heralding a new era for development of the private economy.
Top Chinese tech firms, including Alibaba, Tencent and Meituan, are among dozens of companies revamping most Chinese people’s daily living and habits. Alibaba’s e-commerce units, such as Taobao and Tmall, and other e-ecommerce platforms have revolutionized the shopping patterns of people on the Chinese mainland, in Hong Kong and some overseas regions, serving as the catalyst for stimulating strong growth in online shopping. Based on the figures of the National Bureau of Statistics, online retail sales surged 7.2 percent to 15.52 trillion yuan ($2.13 trillion) in the country in 2024. Tencent’s WeChat Pay and Alibaba’s Alipay make it hassle-free for Chinese consumers and overseas tourists to use their smartphones to make digital payment with QR codes. Chinese food delivery and on-demand services giant Meituan also facilitates foodies to order food on a smartphone, and the rise of ride-hailing apps, such as Didi, allows commuters to look for private vehicles and taxis to hire for their trips. Travelers can make bookings on hotels on online travel agencies’ platforms, such as Ctrip. Amid an uncertain external economic environment and geopolitical tension around the world, these high-tech enterprises can play leading roles in driving domestic consumption and economic growth, as well as upscaling technological prowess. As of September, about 55 million private companies were registered in China, contributing more than half of the country’s tax revenue and over 60 percent of GDP.
Also, more Chinese big tech companies have conducted fundraising in Hong Kong for bolstering business expansion and exploring new markets. As an international financial hub, Hong Kong’s renowned standing in global capital market and its well-established regulatory regime make it a prime destination for mainland and overseas businesses, including tech giants, to raise funds. As Hong Kong is one of the most active markets for IPOs, these companies have successfully tapped into funding from global investors to become unicorns and behemoths. So far, about 20 Chinese tech giants from various industries have listed in Hong Kong, apart from those from the property, banking and insurance sectors. Among them, Tencent has been one of the largest Hong Kong-listed tech firms. Tracing back to 2004, Tencent had a market capitalization of HK$6.22 billion ($800 million) when it listed in Hong Kong via an IPO in June 2004. More than two decades later, Tencent’s market value had soared to around HK$4.65 trillion as of mid-February. Alibaba reached around HK$2.56 trillion in market value, Xiaomi about HK$1.22 trillion, and BYD about HK$1.12 trillion. The China Securities Regulatory Commission earlier encouraged leading mainland enterprises to list in Hong Kong. Based on the latest figures of the Hong Kong Stock Exchange and Clearing Ltd, there were 71 new listings in the city in 2024, of which 68 were on the main board and three on the Growth Enterprise Market, raising a total of HK$87 billion. Hong Kong is ranked as one of the world’s top four IPO venues. So far, over 2,600 companies are listed in Hong Kong’s stock market, and about half of them are from the mainland.
In conclusion, there has been remarkable growth in giant high-technology enterprises in China in the past. The central government has been supportive of private sector companies’ development, and that will boost investors’ and market confidence and thus the country’s economic growth
Meanwhile, Chinese high-tech companies have shown robust growth over the past two decades. From Tencent, Alibaba, BYD, Meituan to search engine Baidu, tourism service provider Ctrip and leading short-video platform Kuaishou Technology, all these enterprises have successfully leveraged the vast business opportunities on the mainland, Hong Kong and overseas markets, and continued to invest in upscaling their cutting-edge technologies and infrastructure. The tech boom in China has encouraged global investors to invest in Chinese technology stocks. Currently, about 20 Chinese high-tech companies, including Tencent, Alibaba, Xiaomi and BYD, have been included in the Hang Seng Index and other major indexes. These companies’ market value has reached a staggering HK$12.10 trillion, accounting for about 46.2 percent of the Hang Seng Index’s total market value of around HK$26.19 trillion as of mid-February.
Furthermore, more and more mainland companies are in the pipeline for an IPO or establishing their offices and research and development institutions in Hong Kong. Contemporary Amperex Technology Ltd (CATL), the world’s top electric-vehicle battery-maker, has launched its plan to list in Hong Kong, striving to raise funds for its battery factory in Europe. CATL is expected to raise as much as $5 billion, which is possibly the biggest IPO since Kuaishou Technology raised $6.2 billion in 2021.
Above all, Chinese big tech companies have become more self-reliant amid the US tech rivalry and hostility against China. China has made rapid progress in developing homegrown technologies after the US tightened export controls on advanced chips and restricted US companies from making investments in the AI industry in China. Global trade tensions have escalated in the past few weeks since US President Donald Trump launched tariff measures, including threats of tariffs, against other countries, including China, Canada, Mexico and the European Union. It has prompted European leaders, including European Commission President Ursula von der Leyen, to assess their trade ties and partnership with China. Indeed, China and the EU can work together despite differences on trade issues. China has been willing to work with the EU and foster bilateral trading ties. At the above-mentioned symposium, President Xi called for efforts to promote the healthy and high-quality development of the private sector in China. He highlighted that the private sector has bright prospects and great potential for business development, and that now is a prime time for private enterprises and entrepreneurs to give full play to their capabilities.
In conclusion, there has been remarkable growth in giant high-technology enterprises in China in the past. The central government has been supportive of private sector companies’ development, and that will boost investors’ and market confidence and thus the country’s economic growth. Chinese high-technology companies have strong innovation capabilities and prowess, making breakthroughs in diverse technological frontiers. These companies play paramount roles to enhance China’s cooperation on economic and technological development with other countries around the world.
The author is a member of the Beijing Municipal Committee of the Chinese People’s Political Consultative Conference, and founder and chairman of the One Country Two Systems Youth Forum.
The views do not necessarily reflect those of China Daily.
