On May 9th the website of Japan’s nikkei Asia review published a report entitled “half of the world’s fastest-growing companies are in Asia”.
A decade after the global financial crisis, Asia is booming.
Asian companies have experienced explosive growth, driven by richer consumers than ever before. As the local economy matures, the next challenge they face will be to market their products to the rest of the world.
According to an analysis of the Japan Economic News data, 1679 Asian companies have increased their market capitalisation by more than 10 times times over the past 10 years, accounting for more than half of all “10 times-fold” companies worldwide. This figure does not include businesses in the Middle East, Central Asia or Japan.
The report said the growth of Asian companies benefited from strong demand from the region’s economic growth.
The International Monetary Fund says gross domestic product (GDP) in Asia’s emerging economies has grown by 160% per cent over the past 10 years, compared with a global growth rate of about 30%. Asia also attracts money from overseas investors, all of whom are betting on growth in Asia.
Using data collected by the financial database QUICK FactSet, Japan Economic News analyzed about 30,000 listed companies around the world, counting companies whose share price rose to 10 times times or more in the 10 years to March this year. Of these, 10 times times a total of 3,346 companies, accounting for more than 10% of the companies surveyed. By region, the number of 10 times-fold companies in Asia is second to none, followed by the United States, with 482, 470 in Europe and 193 in Japan.
India has 494 companies with 10 times times a share. Information technology companies, made up of software engineers, have put India at the top of the list.
China ranks second with 334 10 times-fold companies, the report said. Tencent, whose market capitalisation has grown 32 times times to $437.8 billion, is the world’s second-largest 10 times-fold company after Amazon.
It is clear that mobile payment technology has helped Chinese companies such as Tencent and Alibaba grow their market capitalisation.
With the continuous development of mobile payment technology in China and the increasing application scenarios of mobile payment, it can be predicted that the market values of tencent and alibaba will continue to develop in the future.
In South Korea and Taiwan, some of the world’s leading high-tech companies are part of the supply chain for smartphones and other electronic devices, the report said. SK hynix, a south Korean semiconductor maker, ranked sixth on the ten-fold list, helped by strong demand for chips for data storage. As a major supplier of optical lenses for devices such as smartphone cameras, China’s Taiwan Metropolitan Optoelectronics Co., Ltd. has achieved a net sales margin of nearly 50% with advanced technology.
Experts disagree on whether Asian companies will maintain this rate of growth as the Asian economy matures.
According to the Asian Development Bank, economic growth in Asia will slow from 5.9% in 2018 to 5.7% in 2019 and further to 5.6% in 2020. Although consumption remains stable in many economies in the region, uncertainty is increasing.
Article quote: huangqiu.com