Market Cap of China's Listed Internet Firms Up 0.5% QoQ in Q3 2019

CAICT, 10/15/19

The market value of China's publicly traded Internet companies continued to fluctuate in Q3 2019 against the backdrop of ongoing Sino-US economic and trade frictions, reaching a total market cap of RMB 9.8 trln, up 0.5% QoQ, reports the Policy and Economics Research Institute of the China Academy of Information and Communications Technology (CAICT), a department of China's Ministry of Industry and Information Technology (MIIT).

Total Market Cap of China's Publicly Traded Internet Firms

Period	Market Cap (RMB Trln)	QoQ Change
2018 Q3	9.06	-8.7%
2018 Q4	8.00	-11.7%
2019 Q1	10.19	27.4%
2019 Q2	9.75	-4.3%
2019 Q3	9.80	0.5%

As of the end of Q3 2019, following the delistings of eHi Car and ChinaCache, China had a total of 176 publicly traded internet enterprises.

Q3 2019 Breakdown of Listed Chinese Internet Enterprise Market Cap by Region

Region Where Listed	% of Total Listed Chinese Internet Enterprise Market Cap	QoQ Change (ppts)
USA	52.7%	0.6
Hong Kong	36.9%	-0.8
Mainland China	10.4%	0.2

As of the end of Q3 2019, China's top 10 listed internet enterprises by market cap comprised a combined 80% of China's total listed internet enterprise market cap, representing a 0.2 percentage point QoQ increase.

China's Top 10 Internet Enterprises by Market Cap (as of Sep 30, 2019)

Rank	Company	Market Cap (RMB trln)	QoQ Change	Ticker
1	Alibaba Group	3.0795	1.5%	NYSE: BABA
2	Tencent Holdings	2.8453	-3.6%	0700.HK
3	Meituan Dianping	0.4191	20.8%	3690.HK
4	JD.com	0.2911	-3.4%	Nasdaq: JD
5	Pinduoduo	0.2649	60.7%	NYSE: PDD
6	Baidu	0.2533	-10.3%	Nasdaq: BIDU
7	NetEase	0.2409	7.1%	Nasdaq: NTES
8	360 Security Technology	0.1588	9.8%	601360.SH
9	Tencent Music	0.1477	-12.4%	NYSE: TME
10	Ctrip	0.1151	-18.2%	Nasdaq: CTRP
	TOTAL	7.8157	0.7%

Of the world's top 30 listed internet enterprises by market cap in Q3 2019, China accounted for 9 enterprises, with a combined market cap of USD 1.09 trln, or 26.2% of the USD 4.15 trln top 30 market cap. The USA accounted for 18 enterprises, with a combined market cap of USD 3.0 trln, or 72.1% of the top 30 market cap. Korea, Japan, and Brazil each accounted for one enterprise, with 0.5%, 0.5%, and 0.7% of total top 30 market cap, respectively. China's total of 9 of the top 30 global internet enterprises represents a drop of one enterprise compared to Q2 2019, with online travel booking firm Ctrip falling out of the top 30 in Q3 2019.

In terms of revenues in the previous quarter (i.e. Q2 2019), China's listed internet enterprises recorded total revenues of RMB 592.76 bln, up 13.9% QoQ and 25.9% YoY.

China's Listed Internet Enterprises' Combined Revenues

Period	Revenue (RMB bln)	QoQ Change
2018 Q2	470.83
2018 Q3	492.95	4.7%
2018 Q4	509.30	3.3%
2019 Q1	520.44	2.2%
2019 Q2	592.76	13.9%

Three segments - e-commerce, social/online community, and gaming - made up a combined 80% of China's total listed internet enterprise revenues in Q2 2019. Two segments that saw particularly strong revenue growth in Q2 2019 included online advertising/marketing and online medical & health, up 238% and 245% YoY, respectively.

China's Listed Internet Enterprise Revenues by Segment

Segment	% of China's Total Listed Internet Enterprise Revenue
E-Commerce	60.7%
Social/Online Community	12.4%
Gaming	7.2%
Search	5.2%
Music & Video	4.3%
Portal/E-mail/Online Classifieds	2.8%
Travel	N/A
IDC/CDN	N/A
Literature & Entertainment	N/A
Information Security Services	N/A
IT Services	N/A
Software Tools	N/A
Enterprise Services	N/A
Advertising/Marketing	N/A
Medical & Health	N/A
Education	N/A
Finance	N/A
Real Estate	N/A
E-Government	N/A

Industry Consolidation Continues

China's top 10 listed internet enterprises by Q2 2019 revenues comprised a combined 82.4% of the country's total listed internet enterprise revenues during the quarter, up 1.4 percentage points compared to Q1 2019.

Keywords: national statistics Internet Q3 2019 CAICT MIIT

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