While there are frequent reports of China’s slowing economy, ACCA said many Chinese companies will become global over the next few years if they continue on their current trajectories.
Together with the Shenzhen Finance Institute, ACCA has conducted a research of nearly 3,000 private enterprises listed in China and overseas.
The research stems from 11 specially designed diverse indicators, with five of these measuring the companies’ historical performance and six predicting their future growth, the accountancy body said.
These factors include the company’s size, growth, profitability, innovativeness, level of internationalisation, and media coverage, ACCA said.
What’s clear across all reports is the aspiration to go global, with many Chinese firms already doing so, ACCA chief executive Helen Brand pointed out.
This most recent report indicates that many of these businesses will become China’s next generation of global corporations over the next few years if they continue on their current trajectories, she added.
Key findings
Internet: More high-tech enterprises have evolved into the leaders of China’s future economic growth, said ACCA.
Among the top 100 companies, 42 players are engaged in the computer and internet-related sectors, the accountancy body said.
Diversity: China’s future giants represent a fairly diverse range of industries, according to ACCA.
While those listed overseas tend to be involved in the internet, software development and other related sectors, the seven Hong Kong-listed companies are in the manufacturing, medicine and internet sectors, ACCA observed.
Highest performers: The companies with the best overall rankings had better scores than other companies for corporate scale, growth, cash flow, overseas strategy and media coverage, ACCA said.
Common features: The top-ranked enterprises have had a relatively rapid growth and support innovative development with a long-term vision and international strategy, enjoying positive media coverage and having a strong focus on R&D, according to the report.
