Private Sector Share of China's Top 100 Market Value Hits 40% Driven by AI
Private sector enterprises reached 40% of the market value of China's top 100 listed companies in late 2025, driven by an AI boom according to a PIIE report.
The tide is turning for China's private enterprises. According to a report released Tuesday by the Peterson Institute for International Economics (PIIE), private sector firms accounted for 40% of the top 100 listed Chinese companies by market value in the second half of 2025. This resurgence highlights the enduring resilience of non-state actors in a state-dominated economy.
Surge in Private Sector Share of China's Top 100 Market Value
The increase represents a jump of 2.4 percentage points from the first half of 2025. The Washington-based think tank's report identified a marked rebound from previous lows, noting that high-profile technology firms have regained significant ground. These firms, deeply embedded in China's ongoing artificial intelligence (AI) boom, have become the primary engines of this valuation recovery.
AI Boom as a Catalyst for Growth
Investors' enthusiasm for AI has provided a necessary lifeline for private tech giants that previously faced regulatory headwinds. While the state sector still maintains a heavy presence, the growth of private market value suggests that innovation remains a potent force. Analysts observe that if this trend continues, it could signal a shift in the domestic balance of economic power, though state-owned enterprises still hold the majority share.
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