Digital economy surge pushes world’s most valuable companies to grow more than 40 per cent: Hurun
- The top 500 companies on Hurun’s list gained nearly 50 trillion yuan in value
- The list’s total value reached 375 trillion yuan (US$57.7 trillion)
The world’s most valuable non-state-controlled companies saw their market value grow by more than 40 per cent from two years ago, driven by the surge in growth of the digital economy amid the Covid-19 pandemic, according to Shanghai-based Hurun Research Institute which analysed data from December 1, 2020 to July 15, 2021.
While many businesses have taken a huge hit worldwide, the top 500 companies on Hurun’s list gained nearly 50 trillion yuan in value, with the list’s total value reaching 375 trillion yuan (US$57.7 trillion).
“The top 500 companies have gained more than 100 trillion yuan in value compared to before the pandemic, an amount equivalent to China’s annual GDP,” said Rupert Hoogewerf, chairman and chief research officer of the Hurun Report. “The main reasons include the maturation of the digital economy, the spike in value in biotech and other industries with core technologies as well as the mass money printing by US and other countries.”
Two stocks showed how the pandemic has upended the business world since it was first reported in central China in early 2020.
Hurun calculates the valuation of private companies by referencing similar companies in the same industry or based on the latest round of financing.
The US has 243 companies on the list, ranking number one. China has four fewer than last year but added seven companies that made their debut this year, to come in at 47.
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Over the past two years, fuelled by the pandemic, the entertainment industry enjoyed the largest increase in value with 15 trillion yuan. On its heels were the retail and software industries, both of which increased by 13 trillion yuan.
