rapa
03-26-2008, 04:27 PM
The world's most valuable company is from China, while U.S. companies lag
European companies, gaining in importance in the Top 100, are leaving U.S. companies behind
Prague, 18 January 2008 –The world's Top 10 companies ranked by value are no longer dominated by U.S. companies alone. At the end of 2007, the 10 companies with the highest market value included four Chinese, four U.S. and two European companies. At the end of 2006, the Top 10 was dominated by the United States with five companies.
The market value of Chinese firms in the world's Top 100 most valuable companies more than doubled (a 123% increase) in a year, whereas the stock value of U.S. companies included in this group dropped by one-tenth. So says an Ernst & Young survey of the market value of the world's most successful companies and a year-on-year comparison of these data (at 31 December 2006 and 31 December 2007).
With a market valuation of USD 724 billion, the company with by far the highest value at the end of 2007 was PetroChina, followed by Exxon Mobil at USD 512 billion. The number of Chinese companies in the Top 100 world's most valuable companies increased from 7 to 10 year-on-year. China has thus climbed to third position in the Top 100 behind the United States, with a leading 32 companies (45 companies in 2006), and Great Britain with 11 (9 in 2006).
řsays Hendrik Hollweg, a member of Ernst & Young management. However, Hollweg damps euphoric expectations noting that time will tell whether Chinese companies hold their high stock market valuations. "Looking at developments in Chinese stock exchanges, it is impossible not to think at times of the events surrounding the Internet bubble in 2000." Nevertheless, he believes that in terms of the global economy, the importance of the U.S. economy is weakening and new emerging centres are coming to the fore. "World economic development is heading towards a multipolar system covering a higher number of important economic growth areas," says Hollweg. "Undoubtedly, China will be a leading player in the future. Its position and the significance of its companies in the world's economy will continue to grow. This trend can already be seen in stock price developments."
European companies are pulling into the lead in the Top 100
The list of the Top 100 companies with the highest value in the world underwent a fundamental change last year. European holding companies (46 companies) comprise the most strongly represented group at present. North American-based companies hold second position (32 companies), though they dominated the Top 100 at the end of last year.
"The importance of the United States on the world's stock exchanges considerably diminished last year," says Hollweg of the situation. He gives the weak U.S. dollar as one cause. Other reasons are relatively poor U.S. economic growth, the real estate market crisis and related loan market problems. "The U.S. economy has stopped driving the world's economy, consequently the dollar is losing its lead position," he adds.
The position of the Asian continent, represented by 17 companies (i.e. the same number as last year), still remains relatively insignificant, chiefly as a result of an appreciable loss of position by Japanese companies: at the end of 2006, Japan had eight companies among the most valuable Top 100, but only four at the end of 2007.
Energy and processing companies are climbing, while communications companies lag
The survey also reveals considerable changes in the development of individual sectors. Energy and processing companies and utilities greatly increased in significance: these sectors comprise 29 of the 100 companies with the highest market value (only 18 companies last year). On the contrary, communications companies experienced a marked decline, dropping from 17 to 12 companies in the ranking.
The global financial crisis caused by the problems on the U.S. real estate market had a relatively marginal effect on the Top 100. The number of financial sector companies fell from 32 to 27. However, the list of the world's Top 300 most highly-valued companies more keenly felt the crisis: at the end of 2006, 90 of the 300 best ranked companies represented this sector, while the figure now stands at only 77.
The Top 10 most valuable companies worldwide:
1. PETROCHINA CO (China)
2. EXXON MOBIL (USA)
3. GENERAL ELECTRIC (USA)
4. CHINA MOBILE LTD (China)
5. IND & COMM BK OF CHINA (China)
6. MICROSOFT CORP (USA)
7. GAZPROM (Rusko)
8. ROYAL DUTCH SHELL PLC (The Netherlands)
9. AT&T INC (USA)
10. CHINA PETROL & CHEMICAL (China)
European companies, gaining in importance in the Top 100, are leaving U.S. companies behind
Prague, 18 January 2008 –The world's Top 10 companies ranked by value are no longer dominated by U.S. companies alone. At the end of 2007, the 10 companies with the highest market value included four Chinese, four U.S. and two European companies. At the end of 2006, the Top 10 was dominated by the United States with five companies.
The market value of Chinese firms in the world's Top 100 most valuable companies more than doubled (a 123% increase) in a year, whereas the stock value of U.S. companies included in this group dropped by one-tenth. So says an Ernst & Young survey of the market value of the world's most successful companies and a year-on-year comparison of these data (at 31 December 2006 and 31 December 2007).
With a market valuation of USD 724 billion, the company with by far the highest value at the end of 2007 was PetroChina, followed by Exxon Mobil at USD 512 billion. The number of Chinese companies in the Top 100 world's most valuable companies increased from 7 to 10 year-on-year. China has thus climbed to third position in the Top 100 behind the United States, with a leading 32 companies (45 companies in 2006), and Great Britain with 11 (9 in 2006).
řsays Hendrik Hollweg, a member of Ernst & Young management. However, Hollweg damps euphoric expectations noting that time will tell whether Chinese companies hold their high stock market valuations. "Looking at developments in Chinese stock exchanges, it is impossible not to think at times of the events surrounding the Internet bubble in 2000." Nevertheless, he believes that in terms of the global economy, the importance of the U.S. economy is weakening and new emerging centres are coming to the fore. "World economic development is heading towards a multipolar system covering a higher number of important economic growth areas," says Hollweg. "Undoubtedly, China will be a leading player in the future. Its position and the significance of its companies in the world's economy will continue to grow. This trend can already be seen in stock price developments."
European companies are pulling into the lead in the Top 100
The list of the Top 100 companies with the highest value in the world underwent a fundamental change last year. European holding companies (46 companies) comprise the most strongly represented group at present. North American-based companies hold second position (32 companies), though they dominated the Top 100 at the end of last year.
"The importance of the United States on the world's stock exchanges considerably diminished last year," says Hollweg of the situation. He gives the weak U.S. dollar as one cause. Other reasons are relatively poor U.S. economic growth, the real estate market crisis and related loan market problems. "The U.S. economy has stopped driving the world's economy, consequently the dollar is losing its lead position," he adds.
The position of the Asian continent, represented by 17 companies (i.e. the same number as last year), still remains relatively insignificant, chiefly as a result of an appreciable loss of position by Japanese companies: at the end of 2006, Japan had eight companies among the most valuable Top 100, but only four at the end of 2007.
Energy and processing companies are climbing, while communications companies lag
The survey also reveals considerable changes in the development of individual sectors. Energy and processing companies and utilities greatly increased in significance: these sectors comprise 29 of the 100 companies with the highest market value (only 18 companies last year). On the contrary, communications companies experienced a marked decline, dropping from 17 to 12 companies in the ranking.
The global financial crisis caused by the problems on the U.S. real estate market had a relatively marginal effect on the Top 100. The number of financial sector companies fell from 32 to 27. However, the list of the world's Top 300 most highly-valued companies more keenly felt the crisis: at the end of 2006, 90 of the 300 best ranked companies represented this sector, while the figure now stands at only 77.
The Top 10 most valuable companies worldwide:
1. PETROCHINA CO (China)
2. EXXON MOBIL (USA)
3. GENERAL ELECTRIC (USA)
4. CHINA MOBILE LTD (China)
5. IND & COMM BK OF CHINA (China)
6. MICROSOFT CORP (USA)
7. GAZPROM (Rusko)
8. ROYAL DUTCH SHELL PLC (The Netherlands)
9. AT&T INC (USA)
10. CHINA PETROL & CHEMICAL (China)