Amid a high inflation environment, geopolitical tensions and rising interest rates, the total market capitalization (MCap) of the top 50 Asia-Pacific (APAC) companies will reach 519 billion in the fourth quarter of 2022 (Q4). USD increased (as of 2022). 31 December 2022) reveals GlobalData, a leading data and analytics company.
The financial services and technology sectors topped the list with market valuations of $1.8 trillion and $1.9 trillion respectively. The Top 50 list includes 16 companies in the financial services sector and 11 companies in the technology sector. By region, there are 25 companies in China, 8 in Japan, and 7 in India.
mitsubishi UFJ Financial, AIA Group, Pinduoduo, Tencent, BHP, and Softbank posted the highest quarter-over-quarter (QoQ) growth of over 25%, while KE Holdings and China Shenhua Energy experienced MCap declines of more than 10%.
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GlobalData Business Fundamentals Analyst Murthy Grandhi commented: China’s easing of COVID policies and restrictions on internet companies, and the Beijing government’s supportive measures for the distressed real estate sector, have contributed significantly to the recovery of China’s capital markets. ”
Mitsubishi UFJ Financial rose on strong performance in the first half of fiscal year 2023 (30 September 2022). In line with its integrated health strategy, AIA Group showed an MCap increase of more than 30%, surpassing his strong Q3 2022 results, and as part of its Bull Run, inorganic growth such as Blue Cross and MediCard purchases expanded initiatives.
Chinese e-commerce company Pinduoduo outperformed market expectations in the third quarter, with MCap up 30%. Gaming giant Tencent has rallied against the backdrop of deregulation on internet companies.
Grandhi adds: Mining giant China Shenhua Energy continues its bearish trend as coal sales in the third quarter of 2022 fell 18% from his. ”
Among Indian companies, HDFC Bank and State Bank of India are on track to post healthy overall financial performance figures and a decline in non-performing assets in the second quarter of 2023, coupled with expectations of an easing of monetary policy and a pick-up in economic activity. After recording it showed positive momentum.
Grundy concludes: However, the region will remain a bright spot amid a slowing global economy, foreign exchange tensions and a weak recovery in China. Rising domestic demand and inbound tourism, easing supply chain disruptions, regional free trade agreements and falling commodity prices are likely to boost growth in the region. ”