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▲ Image source: Beijing News
Text | Xie Liangbing
Recently, the “List of China’s Top 500 Private Companies in 2020” published by the China Federation of Industry and Commerce was published. In a special year like this, especially in the context of China’s beginning to enter the new “dual cycle” development pattern, the strength of the city’s vitality behind this list has become the future indicator of development regional economic.
During the past 40 years of reform and opening-up, China’s private companies have grown from small to large and from weak to strong. Statistics show that, as of the end of 2019, China has 123 million market players, including 38.58 million companies and 82.61 million individual industrial and commercial households. Without a doubt, these data reflect the general quality of the local economy on the one hand.
Guangdong: invisible giant
Judging by the “regional distribution of China’s top 500 private companies in 2020,” Zhejiang Province topped the list with 96 finalists, followed by Jiangsu with 90, and Guangdong successfully surpassed Shandong Province, which ranked third place in 2019. 58 finalists ranked third, while Shandong ranked fourth with 52 finalists. The finalist data for these four provinces exceed 50.
From this list, Zhejiang Province has been at the top of the list. According to the 2006 list, there were 203 companies in Zhejiang province that were shortlisted among the top 500 private companies, accounting for almost half of the country; in 2009, there were 182 companies; In 2010, there were only 13 companies in Guangdong that were shortlisted. At that time, the Nanfang Daily also published an article. Explanation and reflection.
Ten years later, although Zhejiang Province still tops the list in absolute numbers, Guangdong’s number is increasing. Also, the most important evaluation criterion for this list is corporate income. In this regard, the total revenue of listed companies in Guangdong is 56,493 billion yuan, exceeding 540.9 billion yuan in Jiangsu province and 51,728 billion yuan in Zhejiang province, which is the highest in the country. first.
If calculated in terms of total assets, the total assets of the listed Guangdong companies are 11152.7 billion yuan, almost three times that of Zhejiang. Topping the list from Guangdong, Huawei has widened the gap between its revenue and the 500th company. In 2019, Huawei’s revenue exceeded 800 billion yuan, 42.5 times that of the 500th company, in 2019. compared to the previous year. It is 38.8 times.
Among the top ten companies in terms of revenue, Guangdong accounts for half (5 companies), 2 in Jiangsu, 2 in Beijing, and 1 in Zhejiang. Among them, Guangdong companies on the list include Huawei (858.8 billion yuan), Zhengwei International (613.8 billion yuan), Country Garden (485.9 billion yuan), Evergrande Group ( 477.5 billion yuan) and Vanke (367.8 billion yuan).
▲ Image source: Beijing News
Guangdong-listed companies’ operating income, total assets and profits rank first in the country. At the same time, among the top 100 private companies in China’s service industry in 2020, there are 24 companies in Guangdong alone, accounting for 24%; Beijing and Zhejiang are tied for second, both out of 10; Jiangsu and Chongqing are tied at 7 Companies were shortlisted among the top 100 private companies in the service industry.
It can be seen that Guangdong Province is an invisible giant in the private economy. The reason why private companies in Guangdong can lead the country is largely due to its excellent business environment and good atmosphere of innovation and development. For example, in Shenzhen, the private economy has always been highly developed, with “the big indomitable and the small overwhelming.”
Today, Shenzhen has 1.97 million private companies, with the highest business density in the country. Among local companies listed in Shenzhen, private companies account for 90%; the private economy contributes 40% of the city’s GDP, 60% of taxes, 70% of employment and 90% of patents. Huawei and Vanke, which are in the top ten private companies in the top 500, have tax payments exceeding 100 billion yuan in 2019.
In Shenzhen, Huawei, Evergrande, Vanke, BYD, SF and other “star companies” are familiar with them, but among the top 500 private companies in China in 2020, many Shenzhen companies are unfamiliar to people. These companies are also leaders in the industry and are called “hidden champion” companies. Behind this phenomenon is the vitality of Shenzhen.
Hangzhou: private enterprise paradise
“There is heaven, there is Suzhou and Hangzhou.” Everyone in the Chinese market economy knows that Hangzhou is also a haven for private companies. Back then, “Why didn’t Alibaba go to Beijing, Shanghai, but Hangzhou?” Ma Yun gave the answer: because Hangzhou loves private companies more.
39 Hangzhou companies have entered the “Top 500 Chinese Private Companies in 2020”, an increase of 3 from the previous year, and the number of companies on the list has been ranked first in the country for 18 consecutive times . In addition, 26 Hangzhou companies have entered the “Top 500 Chinese private enterprises in manufacturing industry in 2020”; 6 companies have entered the “Top 100 of private companies in China in the service industry 2020”.
The development of private companies has brought vitality to the city. Hangzhou is the best-known business city in the country. Young entrepreneurs are in constant influx. The net talent influx rate ranks first among cities in the country for 7 consecutive quarters. The number of national incubators ranks first among provincial capitals and subprovincial cities for 5 consecutive years. Every day 602 companies are born and more than 10 entrepreneurial activities are carried out.
According to incomplete statistics, Hangzhou currently has 163 publicly traded companies, ranking fourth in the country in terms of numbers, second only to Beijing, Shanghai and Shenzhen. There are 23 startups in Zhejiang with a valuation of more than $ 1 billion, 22 in Hangzhou, 120 in the province with a valuation of more than $ 100 million, and 87 in Hangzhou.
This also brings Hangzhou’s urban development into a fast lane. It is understood that from 2015 to 2018, Hangzhou’s population growth was 126,000, 170,000, 280,000, and 338,000 respectively. In 2019, Hangzhou’s permanent resident population reached 10.36 million, officially surpassing the 10 million mark, with an increase of 554,000, which surpassed Shenzhen, leading all the major cities in the country.
The vigorous development of private companies is inseparable from a good business environment. Faced with the “growth problems” of enterprises, Hangzhou governments at all levels provide babysitting services, “I am responsible for the sun and rain, and you are responsible for growing.” It is understood that behind each key company in Hangzhou, there is a special “two store” to provide specialized “one-to-one” services.
The North-South divide behind private companies
Compared to the dynamic private economy in the South, the North appears weak.
Among the top 500 private companies this time, the number of shortlisted companies from Shandong has dropped significantly, declining from 9 to just 52, ranking fourth in the country. This is the second consecutive year of decline in the number of shortlisted companies from Shandong (73 in 2017 and 2018 respectively). Home and 61).
Shandong’s industrial structure has always been dominated by chemical and heavy industries, traditional industries account for about 70% of the industry, and heavy chemical industries account for about 70% of traditional industries. Obviously, most of these heavy chemical industries are state-owned companies and the development of private companies is restricted. Tianjin, also in the north, faces the same problem.
Judging by the shortlisted companies, the manufacturing industry continues to dominate. Industry concentration is relatively high, with 320 companies concentrated in the top ten industries. Ferrous metal smelting and rolling processing industry, real estate industry, construction industry, and the overall category ranked in the top four. As we all know, China’s manufacturing cities like Suzhou, Dongguan, Foshan, Quanzhou, and Ningbo are located in the south, while the north is relatively weak.
▲ Image source: Beijing News
Another very important trend is that, compared to the top 500 private companies in recent years, these private companies as a whole pay more attention to R&D and innovation. Among the top 500 private companies, there are 321 companies with R&D personnel representing more than 3% of the total number of employees, of which 186 companies have more than 10%. There are 59 companies with an R&D investment intensity of more than 3%, of which 5 companies have more than 10%.
In the face of trade friction between China and the United States, we have been “stuck” on some key technologies. This list also shows a good phenomenon. Among the top 500 private companies, 402 companies have key technologies derived mainly from independent research and development, and 408 companies have completed the transformation of scientific and technological achievements through their own funds. The number of patents in force for the top 500 private companies increased by 8.46%.
Driven innovation is becoming the main focus of economic transformation. The most direct data for innovation is data on R&D expenditures in science and technology. Behind the widening of the North-South gap, it actually reflects competition between emerging economies and traditional industries, and the difference between the speed and the slowness of open innovation. This logic is the same in the development of the private economy.
□ Xie Liangbing (Deputy Dean of the Chinese Think Tank Research Institute, Dean of the Research Institute of Standard Classification Cities)
Editor: Ke Rui Intern: Wang Yachen Correction: Zhao Lin
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