The aggregate market capitalization of the top 50 Asia-Pacific Companies attained stability with a marginal decline of 0.7%, to settle at $7.9 trillion in Q4 2021, of which Chinese Entreprises accounted for more than 50%, according to GlobalData.
Compared to Q3 2021, where the market capitalization declined by 8%, this shows a massive improvement in market stability.
The list for the quarter was dominated by China with 26 companies, followed by 10 from Japan, five from India, three from Australia, two from Hong kong and South Korea, and one each from Singapore and Taiwan.
Market Capitalisation for Chinese stocks, after slumping by 15% to $4.3 trillion in Q3 2021 stemmed the tide as they reached $4.2 trillion in aggregated market value in Q4 2021, a decrease of 1.4% over the previous quarter.
However, there were a few stocks that made declines in market values. Pinduoduo saw about 35.7% drop as Tencent sold its significant shares of Sea Ltd, which also led to a 29.5% drop in market value of Sea Ltd.
According to GlobalData, investors believe Pinduoduo could be the next target after Tencent off-loaded its stakes in Sea and JD.com.
Parth Vala, Company Profiles Analyst at GlobalData, commented:
“Despite top Chinese companies attaining stability in their market value over the previous quarter, the Chinese stock market remains on tenterhooks due to the government’s regulatory crackdown on tech companies and real estate behemoth Evergrande Group’s financial woes, its trading suspension, and heavy debt on other real estate developers.”
Parth Vala, Analyst, GlobalData
Top Performers
The top performers from the list were Tokyo Electron, Nongfu Spring, and SK Hynix, whose market values rose by 25% or more.
Tokyo Electron’s stellar net sales and profit growth rates in the first half ending September 2021 were 39.6% and 78.7%, respectively, over the corresponding period in 2020.
According to Globaldata, the growth was hugely driven by the expansion of semiconductor production equipment market in view of booming demand for semiconductors across the globe. As a result, the company surpassed its earlier profit forecast by 8% to JPY400 billion for full year 2022.
Bottled water giant Nongfu Spring saw its market value soar by 29% over the previous quarter. For the six months ended June 2021, the company registered a substantial growth of 31.4%, 33.7%, and 40.1% in its net sales, gross profit, and net profitability, respectively, over the corresponding period in 2020.
Amid semiconductor shortage worldwide, SK Hynix moved forward towards the acquisition of Intel’s NAND memory business as it completed its first phase, which bolstered investors’ confidence. It translated into the company’s market value growing more than 26% over the previous quarter.
Some of the other better performers were Kweichow Moutai, Contemporary Amperex Technology, Sony Group, BHP, BYD, and Infosys, which registered more than 10% growth in their market value.
In terms of sector break-up, technology companies led the list with a count of 14 and aggregate market value of $2.9 trillion, followed by 13 financial services enterprises with a combined market value of $1.8 trillion.
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