Summary of Key Points
Recently, in the A-share market, hard technology companies represented by AI and semiconductors have become highly sought-after assets. Companies such as Yushu Technology and Changxin Technology, which have recently gone public, have seen their stock prices soar. Not only have their own market values reached hundreds of billions or even trillions of yuan, but they have also significantly boosted the total market value rankings of the cities in which they are located (Hefei, Hangzhou, Wuhan, etc.). At the same time, the number of companies in the A-share “hundreds-of-billions market value club” has increased rapidly, with the focus shifting from traditional industries like banking and petroleum to hard technology firms. This indicates that the core of a city's competitiveness is shifting from mere scale to its ability to master hard technology and innovation ecosystems.
1. One Hard Technology Company Can Boost a City’s Market Value
Hard technology companies act as “super engines” for a city’s market value, capable of propelling a city’s ranking forward significantly:
- Hefei: After the listing of Changxin Technology (a leading domestic DRAM chip manufacturer), its market value soared to 3.28 trillion yuan, surpassing Industrial and Commercial Bank of China to become the largest company in the A-share market. Before this, the total market value of other companies in Hefei was only 1.26 trillion yuan, ranking 14th nationally; with Changxin Technology, Hefei’s total market value exceeded 4.5 trillion yuan, rising to 4th place in the country, ahead of established strong cities like Suzhou, Hangzhou, and Guangzhou.
- Hangzhou: On its first day of trading, Yushu Technology’s stock price increased by 629%, and its closing market value was 341.8 billion yuan, surpassing Hikvision to become the largest company in Hangzhou. Now, Hangzhou has six companies with a market value of over 100 billion yuan, with a total market value of 3.64 trillion yuan, ranking 5th nationally, narrowing the gap with Hefei.
- Suzhou: Two years ago, there was no company with a market value of over 100 billion yuan; now, thanks to AI-related companies such as Dongshan Precision and Tianfu Communication, the total market value has reached 2.99 trillion yuan, ranking 6th nationally.
- Wuhan: Relying on its “Optics Valley Seven Stars” (a cluster of companies in the optoelectronics industry, including Yangtze Storage and Changfei Fiber Optic), Wuhan’s total market value has increased from less than 800 billion yuan at the end of 2024 to 1.52 trillion yuan, rising to 12th place. With Yangtze Storage about to go public, Wuhan’s ranking is likely to rise even further.
2. The “Hundreds-of-Billions Market Value Club” Is Expanding, with a New Focus
Previously, the majority of companies in the A-share market with a market value of over 100 billion yuan were from traditional industries like banking and petroleum; now, hard technology firms are taking the lead:
- Dramatic Increase: The number of such companies has increased from 133 at the end of 2024 to 186, a rise of 53 (nearly 40%).
- Shift in Focus: The new additions include both newly listed hard technology companies (such as Changxin, Yushu, and Muxi Shares) and niche leaders that have gained momentum due to AI concepts (e.g., Songfa Shares, which has increased in value by 36 times; Hongqiao Holdings by 22 times). Core sectors such as optical modules, semiconductors, and new energy are becoming the driving forces.
3. Beijing, Shanghai, and Shenzhen Remain Dominant, but New Cities Are Making Up Ground
Beijing, Shanghai, and Shenzhen remain the leaders in the capital market:
- These three cities together have 1,365 listed companies, accounting for 24.6% of the national total; their combined market value is 54.76 trillion yuan, accounting for 42.7% of the national total. Beijing leads with 47 companies with a market value of over 100 billion yuan.
However, new cities are catching up through hard technology: Cities like Hefei and Wuhan can rapidly improve their rankings with just one or two top-tier hard technology firms, demonstrating that city competition is no longer solely about size but also about having leading hard technology companies and industrial clusters.
4. Hard Technology Has Become the New Ace in City Competition
The core of this market value transformation lies in the explosive growth of AI and semiconductors:
- Cities are now competing based on whether they have outstanding hard technology firms. With a chip leader like Changxin, Hefei has risen from a “second-tier” city to a “first-tier” market value city; with a tech startup like Yushu, Hangzhou has strengthened its position.
- Hard technology not only drives stock prices but also boosts the entire industrial ecosystem of a city. For example, Wuhan’s “Optics Valley Seven Stars” covers the entire optoelectronics industry chain, and Suzhou’s six companies with a market value of over 100 billion yuan are all related to AI capabilities, creating a synergistic effect.
In short, for cities to make a mark in the capital market, they must focus on hard technology. With leading hard technology firms, both market value and competitiveness naturally increase.