Growth Dragons Weekly: China Dominates Fortune 500
In Growth Dragons this week:
China dominates the Fortune Global 500 List
Tencent had a busy week: Top 1H2023 Games + Smartphone Restriction + Donation + AI Model Hunyuan
Luckin Coffee overtook Starbucks in China
China dominates the Fortune 500 List
Given its status as the world's largest economy and home to many renowned brands, it is only logical for most individuals to assume that US companies would dominate the Fortune Global 500 list, which ranks companies based on their revenue.
Since 2020, there has been a noteworthy development in the Fortune Global 500 list, where the number of Chinese companies now exceeds that of their US counterparts. This indicates that Chinese companies have proven themselves to be financially significant, comparable to their American counterparts in terms of revenue generation. Consequently, China's ascent in the global economic landscape poses a challenge to the longstanding global supremacy of the US.
Upon closer examination of the top 10 companies on the Fortune Global 500 list, we observe that the US still maintains a higher representation than Chinese companies. It is essential to note that three entities within the top ten are state-owned, not publicly listed companies. Nevertheless, some of their subsidiaries, like China National Petroleum's PetroChina (SSE:601857 / SEHK:857) and Sinopec Group's China Petroleum & Chemical Corporation (SSE:600028 / SEHK:386), are listed on the stock exchanges.
According to the latest list, Chinese automaker BYD made a significant leap from 436th position last year to 212th position this year, recording a total revenue of $63,041 million in its previous fiscal year.
Conversely, Alibaba experienced a decline in ranking, moving from 55th place last year to 68th place this year. E-commerce giant JD also saw a drop from 46th to 52nd place, with a total revenue of $155,433 million.
Several other notable changes occurred as well. Tencent slipped from 121st to 147th place, while Lenovo plummeted 46 spots to 217th place, and Xiaomi fell 94 places to 360th place. Huawei's ranking also suffered a decline, dropping 15 places to 111th.
On the other hand, there were new entrants. Food delivery giant Meituan entered the list for the first time, securing the 467th spot with a total revenue of $32,699 million. Additionally, two other companies from Shenzhen made their debuts on the list: electric equipment manufacturer Luxshare at 479th place and battery maker CATL at 292nd place.
Here is a select list of well-known China stocks in the Fortune Global 500:
You can download the full list of 142 China companies in the Fortune Global 500 below: