Chinese Listed Companies Surpass 72 Trillion Yuan in 2024 Combined Revenue: A Shift in Global Economic Power?

Chinese listed companies have reached a pivotal milestone, reporting a combined revenue of 72 trillion yuan in 2024—a figure that underscores their growing influence in the global economy. This achievement builds on a trajectory of expansion highlighted by 2023’s estimated 72.5 trillion yuan in revenue for A-share listed companies, driven by robust overseas sales and domestic sector diversification. However, the path forward is fraught with challenges, from sector-specific overcapacity to geopolitical headwinds.

The Drivers of Growth: Overseas Expansion and Sector Diversification

The 2023 data revealed that overseas revenue for A-share listed companies surged to 8.51 trillion yuan—11.73% of total revenue—and grew by over 350 billion yuan year-on-year. This trend has likely intensified in 2024, as Chinese firms continue to leverage global markets. Cross-border e-commerce exports, for instance, grew by 19.6% in 2023 to 2.38 trillion yuan, a trend that may have further fueled 2024’s results. Meanwhile, new energy exports (electric vehicles, batteries, and photovoltaic products) broke through the 1 trillion yuan barrier for the first time in 2023, signaling a strategic pivot toward high-tech manufacturing.

Leading companies such as Poly Developments and Holdings Group (347.15 billion yuan in revenue) and Baoshan Iron & Steel (346.93 billion yuan) exemplify this diversification, with their success rooted in infrastructure and industrial sectors. The financial sector also remains strong, with China Merchants Bank reporting 339.12 billion yuan in revenue, reflecting robust domestic demand for banking services.

The Risks: Overcapacity, Domestic Stagnation, and Geopolitical Tensions

Despite these gains, risks loom large. The 2023 data warned of structural overcapacity in new energy sectors, exacerbated by price wars among domestic manufacturers. This could dampen profit margins in 2024, even as revenue grows. Domestically, China’s economy faces headwinds, including weak consumer spending and property market stagnation. While over 50% of listed companies reported revenue growth in 2023, only 58% achieved profit growth—a gap that may widen as cost pressures rise.

Geopolitical risks also threaten the export-driven model. U.S.-China trade tensions, semiconductor export controls, and European skepticism toward Chinese tech investments could crimp overseas revenue growth. For instance, Chinese semiconductor firms like Semiconductor Manufacturing International Corp (SMIC) face restrictive U.S. policies, complicating their global ambitions.

The Bottom Line: A Dual-Edged Sword for Investors

The 72 trillion yuan revenue milestone is a testament to China’s corporate resilience and strategic pivots toward high-tech and global markets. However, investors must weigh this against looming risks. The data suggests that sectors like cross-border e-commerce and new energy remain growth engines, but their sustainability hinges on resolving overcapacity and navigating trade barriers. Meanwhile, state-owned enterprises (SOEs), which dominate sectors like energy and finance, offer stability but may underperform in innovation-driven markets.

In conclusion, Chinese listed companies’ 2024 revenue achievement reflects a complex landscape of opportunity and risk. While the scale of their operations positions them as global economic heavyweights, their path to sustained growth will require addressing domestic economic softness, sector imbalances, and geopolitical friction. For investors, a selective approach—focusing on firms with strong overseas exposure, technological differentiation, and minimal reliance on state subsidies—will be critical to capitalizing on this milestone without overexposure to its vulnerabilities.

The numbers are clear: China’s corporate sector is a global force. Navigating its complexities will determine whether this revenue milestone becomes a springboard for future dominance or a fleeting peak in an uncertain era.