The surging vitality of emerging industries highlights the background of high-quality economic development
Listed companies are not only the cornerstone and foundation of China’s economy, but also the leader and vanguard of high-quality economic development. Judging from the third quarterly report, the overall performance of listed companies in the first three quarters is marginal, and the industry recovery trend is obvious, reflecting the development trend of China’s economic operation.
At present, China’s economy is at a critical stage of transformation and upgrading. The main task is to promote the transformation of development mode and push the economy towards high-quality development. Therefore, the market not only pays attention to the development trend of traditional industries, but also pays attention to the growth momentum of emerging industries. Emerging industries are characterized by active innovation, intensive technology and broad development prospects, which are related to the overall situation of national economy, social development and industrial structure optimization and upgrading, covering a new generation of information technology, new energy, new materials and many other fields.
It is gratifying that in the first three quarters, the two core indicators of revenue and net profit of emerging industries generally performed well. The author believes that the surging vitality of emerging industries and the accelerated gathering of innovative kinetic energy highlight the resilience of China’s economic development and the background of high-quality development, which is reflected in three levels.
First, emerging industries are full of vitality and support reasonable economic growth.
The development momentum of emerging industries is remarkable, which strongly supports economic growth. According to the disclosure of China Association of Listed Companies, as of October 31st, in addition to the delayed disclosure of the announcement, a total of 5,368 listed companies in China’s domestic stock market disclosed the third quarter report of 2024. In the first three quarters, the auto parts and semiconductor industries were booming, with net profit increasing by 20.5% and 41.9% respectively, and the net profit of the electronics industry increased by over 35%. The revenue and net profit of listed companies in high-tech manufacturing industry increased by 6.1% and 3.2% respectively, which was significantly higher than the average level. Correspondingly, according to the National Bureau of Statistics, the added value of high-tech manufacturing industries above designated size increased by 9.1% year-on-year in the first three quarters, which was 3.3 percentage points higher than the average growth rate of industries above designated size.
At present, China’s economy is accelerating from a high-speed growth stage to a high-quality development stage. During the transition period, some traditional industries, especially those with huge upstream and downstream industrial chains, have weakened their pulling effect on economic growth. In order to maintain reasonable macroeconomic growth, emerging industries need to "make up the position" in time. The vitality of emerging industries is conducive to maintaining "reasonable growth in quantity" in the macro economy, promoting the upgrading of industrial structure, promoting full employment, enhancing the international competitiveness of entity enterprises, and establishing an innovation-driven development model.
Second, investment in R&D in emerging industries will be increased to enhance the stamina of economic development.
The continuous growth of R&D investment is also one of the dynamic performances of emerging industries. At present, emerging industrial companies are mainly concentrated in the Growth Enterprise Market, science and technology innovation board and the North Stock Exchange. According to the data of China Association of Listed Companies, the R&D investment of listed companies reached 1.10 trillion yuan in the first three quarters, a year-on-year increase of 3.9%. Among them, the R&D investment of GEM, science and technology innovation board and Beijing Stock Exchange has been increasing, and the R&D intensity in the first three quarters was 4.74%, 9.94% and 4.73% respectively, which were higher than the average level of listed companies.
At this stage, the R&D investment of emerging industrial companies has gradually become an important indicator of widespread concern of regulators, investors and peer companies. From a macro perspective, R&D investment is an important factor affecting economic growth, which can promote technological progress, improve production efficiency and ultimately promote the growth of the whole economy. From a micro perspective, sustained and high-intensity R&D investment can not only accelerate the transformation of scientific and technological achievements, but also help listed companies gain greater competitive advantages in the international market. The growth of R&D investment of emerging industrial companies is not only conducive to their own high-quality development, but also enhances the development potential of China’s economy.
Third, emerging industries become the main areas of mergers and acquisitions, and enhance the innovation ability of the real economy.
According to the China Association of Listed Companies, this year, traditional industries have been optimized, reorganized and upgraded, emerging industries have become the main areas of mergers and acquisitions, and industry consolidation has gradually become the mainstream. M&A is conducive to guiding more capital and resources to leading enterprises with forward-looking and strategic significance, promoting enterprises related to emerging industries to broaden the "moat" and forming a number of "unicorn" enterprises. This is conducive to enhancing China’s independent innovation ability in key areas and ensuring that it maintains its advantages in global competition.
To ask the water in the pond, why is it so clear? Because there is an inexhaustible source of constant flow of living water for it. In the long run, as one of the most important "living waters" to promote China’s economy, the prosperity and development of emerging industries will help promote China’s high-level scientific and technological self-reliance, enhance macroeconomic vitality, consolidate the economic recovery, improve social expectations, enhance people’s livelihood and well-being, and build a new development pattern.
Source: Securities Daily
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