Steady Progress—Summary of 2024 Annual Reports of Companies on SSE Main Board

As of April 30, 2025, companies listed on Shanghai Stock Exchange (SSE) Main Board have completed disclosure of their 2024 annual reports. Data shows that the SSE Main Board has once again shown stable foundation and strong resilience thanks to the strong support of a package of new policies. The positive and promising strokes painted each listed company are collectively illustrating the stable structure of China's grand economic pattern.

I. The scope of stability continues to expand

In 2024, the companies on the SSE Main Board recorded a total operating revenue of 49.57 trillion yuan, which remained stable year-on-year, a net profit of 4.35 trillion yuan, and a net profit after deducting non-recurring gains and losses of 4.14 trillion yuan, up 1.9% and 2.4% year-on-year, respectively. 80% of the companies achieved profitability, and 40% of the companies' net profits increased year-on-year. More than 230 companies had a net profit increase of more than 30%, and 78 companies turned losses into profits. The annual trend first fell and then bounced back. The net profit fell by 1% year-on-year in the first half of the year, and rebounded sharply to a 5% growth in the second half of the year. The operating cash flow improved significantly, and the year-on-year growth rate in the fourth quarter further expanded to 15%, and the figure in the whole year returned to that of the same period of the previous year. In the first quarter of 2025, the net profit of real-economy-based enterprises resumed its upward trend, and operating cash flow turned positive significantly.

Looking at the longer range, the level of stability of the SSE Main Board has continued to expand. In the past five years, the compound growth rate of both the operating revenue and net profit of the SSE Main Board were both 5%. In the past five years, the revenue and net profit of 744 “long-distance runner” companies achieved positive compound growth, contributing nearly 70% of the total revenue and more than 80% of the total profit. The revenue and net profit of 310 “downturn-resilient” companies had year-on-year growth or slight fluctuations for three consecutive years. These companies have stable operations and strong risk resistance capability, which have become the “genetic code” of the endogenous stability of the SSE market. Among them, 180 SSE Index constituent companies in finance, energy, construction, and transportation played a ballast role, contributing more than 80% of the total profit; new-quality variables represented by automobiles, pharmaceutical biology, intelligent manufacturing, and fine chemicals also continued to be injected, with a three-year compound growth rate of 10% in net profit, becoming an emerging force to resist external shocks and cyclical fluctuations.

II. Market structure transforms towards new industries

Emerging industry companies are growing with the trend, and the sector distribution of listed companies keeps improving. In the past decade, the proportion of companies in emerging industries represented by electronics, communications, pharmaceutical biology, and automobiles climbed to 40%, and the number of companies in sub-sectors such as semiconductors and new energy vehicles doubled. Profit contributions have risen accordingly. In the past decade, the compound growth rate of the net profit of emerging industry companies reached 11%, 5 percentage points higher than that of traditional industries. These companies contributed more than 40% of the net profit of manufacturing and service industries, an increase of 8 percentage points from 10 years ago. In 2024, benefiting from AI technology, cloud computing demand, and the trend of electrification and intelligence, the net profit of industries such as electronics, communications, and automobiles increased by 11%, 6%, and 4% year-on-year, respectively, demonstrating a clear shift from old to new growth drivers.

The transformation towards new industries is also reflected in valuation. In the past decade, the leading industries by market value on the SSE Main Board have gradually shifted from traditional industries such as finance and energy to diverse emerging industries such as automobiles and pharmaceutical biology. The market value of the automobile, non-ferrous metals and electronics industries ranked among the top 10, jumping to 2.0 trillion yuan, 1.5 trillion yuan and 1.5 trillion yuan, respectively. The rankings of industries such as basic chemicals and communications improved significantly, and their market value all doubled compared with 10 years ago. The top 50 companies by market value took on a new look, with emerging industry companies accounting for 50%, and both the number and proportion increased significantly. Listed companies representing "new economy" elements such as semiconductors, communications, and new energy vehicles are gradually taking the lead. At the same time, the median valuation of emerging industries is moving up, and the overall price-earnings ratio increased to 24, which has become an important manifestation of China's asset revaluation since last year.

III. Consumption revives with new and trade-in demands

Diverse consumption scenarios are innovated to bring upgraded services and consumption to the general public. New scenarios boost new demand. Eastroc Beverage (Group) Co., Ltd. actively expanded beverage consumption demand in diversified scenarios such as sports and fitness, workplace endeavors, and outdoor socializing, achieving explosive growth in annual operating revenue and net profit. Shanghai M&G Stationery Inc. made collaborations with China chic and trendy brands, making content in a mixed form of "store visit" + "product recommendation" + "emotional value", and the operating revenue of M&G Life stores increased by 10% year-on-year. Youyou Foods Co., Ltd. expanded the consumption scenarios for marinated flavor snacks, and its net profit increased by 35% year-on-year. With frequent highlights in service consumption, Shanghai Bailian Group Co., Ltd. focused on developing the “first-time” economy, introducing more than 100 flagship debut stores, conducting 167 new product launches, and holding 26 debut exhibitions throughout the year. Wangfujing Group Co., Ltd. continued to foster new lifestyle consumption that integrates retail, service, experience and other business forms, and its stores introduced more than 1,000 lifestyle service resources throughout the year. Shanghai Yuyuan Tourist Mart (Group) Co., Ltd.'s Year of Snake Lantern Festival used VR technology to create an immersive light and shadow exhibition with the theme of Shanhaijing (The Classic of Mountains and Seas), the total transaction volume of Yuyuan Tourist Mart increased by 62% during the Lantern Festival. The vitality of tourism travel is strong. The combined revenue of Air China, China Southern Airlines and China Eastern Airlines increased by 14%, and their net loss continued to decrease significantly compared with the previous year. The combined revenue of Shanghai International Airport and Baiyun International Airport increased by 13%, and their net profit both doubled. Changbai Mountain Tourism Co., Ltd. relied on high-quality natural resources to build an ice and snow economic agglomeration area, maintaining growth in both revenue and net profit. The popularity of inbound tourism continues. The revenue of China CYTS Tours Holding Co., Ltd.'s inbound and outbound travel agency business increased significantly by 58%.

With the implementation of the trade-in policy, old automobiles, home appliances and digital products are widely traded for a discount when buying new ones. Intelligent and new energy vehicles have dominated market demand, and the net profit of the automotive industry increased by 4% year-on-year. The sales volume of SERES new energy vehicles increased by 183%, and its net profit rose by more than 300%. The home appliance industry's full-year net profit grew by 5%, with a 16% increase in the fourth quarter. Hisense Visual Technology Co., Ltd. promoted the upgrade from traditional screens to high-definition and green energy-saving ones, doubling its net profit in the fourth quarter. Ecovacs Robotics Co., Ltd. continued to launch a number of best-selling new sweeping robot products, with annual net profit increasing by 32%. The recovery in demand for digital devices such as high-end smartphones and smart wearables drove up the revenue and net profit of the upstream consumer electronics industry by 26% and 9%, respectively. Huaqin Technology Co., Ltd. and Shanghai Longcheer Technology Co., Ltd. delved into in the ODM field of smart products such as personal computers and mobile phones, with revenue increasing by 29% and 71%, respectively.

IV. Over RMB 1 trillion R&D investment marks innovation efforts

In 2024, the R&D investment of SSE-listed companies exceeded 1 trillion yuan again, accounting for nearly 40% of the total of companies in China. The total R&D investment of real-economy-based enterprises on the SSE Main Board was about 920 billion yuan, maintaining a growth trend for years running and doubled over the past five years. A total of 723 companies invested more than 100 million yuan in R&D, and 831 companies maintained growth in R&D investment. The steel, basic chemicals, automotive, electronics, and mechanical equipment industries had the highest R&D investment growth rates, at 12%, 8%, 7%, 6%, and 5%, respectively. The R&D intensity in computers, mechanical equipment, national defense and military industry, automobile, pharmaceutical biology, and communications was relatively high, reaching 14%, 6%, 5%, 5%, 4%, and 4%, respectively. Innovation investment drives performance and valuation growth. Companies with cumulative R&D investment exceeding 1 billion yuan in the past three years and those with a compound growth rate of more than 5% in the past three years had an average net profit growth rate in 2024 that was 3.6 and 6.1 percentage points higher than the overall level of real-economy-based enterprises. Companies with the average R&D intensity in the past three years among the top 20% and 40% had an overall price-earnings ratio of about 50 and 32, which was about 31 and 13 higher than that of those among the bottom 20%.

The upgrading of traditional industries and the racing emerging segments go hand in hand. The lighthouse network has set a benchmark for the intelligent and digital transformation of the global manufacturing industry. Sany Heavy Industry Co., Ltd. constructed 37 lighthouse factories and reached full production. Foshan Haitian Flavouring and Food Company Ltd. Gaoming Factory became the first lighthouse factory selected in the global brewed condiment industry. Industries such as steel and construction focus on green intelligent manufacturing. Baoshan Iron & Steel Co., Ltd. built an intelligent computing power center that promoted the implementation of 125 scenarios, reducing carbon emission intensity by another 6%. Power Construction Corporation of China, Ltd. and China Energy Engineering Corporation Limited focus on new energy construction and development business to strengthen core technology research. Industries such as medicine and semiconductors lead the technological high ground. Jiangsu Hengrui Pharmaceuticals Co., Ltd.'s overseas innovative drugs became the second-largest engine of its performance growth, with 13 license-out transactions reached in the past five years. Will Semiconductor Co., Ltd. Shanghai focused on high-end image sensor solutions and other fields, achieving more than 20% performance growth in high-end smartphones and automotive autonomous driving. Equipment, communication and other industries are accelerating technological innovation and interconnection to build business in the future segments. Shanghai Moons' Electric Co., Ltd. and Wolong Electric Group Co., Ltd. expanded robot joint drive systems based on years of accumulation in automated motion control technology and secured a number of core technologies. The three major telecom operators invested heavily in 6G and AI computing power fields, and a number of computing power service providers such as Dawning Information Industry Co., Ltd. and Quectel Wireless Solutions Co., Ltd. deepened their business throughout the industrial chain.

V. Private and state-owned enterprises give play to their own strengths

Private enterprises show quality and efficiency improvement. Among the SSE-listed real-economy-based enterprises, private enterprises account for about 60%. In 2024, their operating quality and efficiency continued to improve, with revenue increasing by 2.6% year-on-year, higher than the overall market level. The net profit of 433 private enterprises grew. Various operating indicators are further optimized. The total asset turnover rate was 0.65, a year-on-year increase; the inventory turnover rate rose by 0.43 year-on-year, and the growth rate further expanded. The debt-to-asset ratio was 56.88%, a year-on-year decrease of 0.18 percentage point, better than the overall market. Cash takes a larger share in profit, with operating cash flow covering 2.35 times the profit, an increase of 46% year-on-year. The year-on-year growth rate of cash flow expanded quarter by quarter, reaching 12% in the fourth quarter. More than 80% of companies achieved net operating cash inflow. It is worth mentioning that private enterprises dare to invest a lot in R&D, leveraging growth momentum with innovation. The annual R&D investment reached 266.4 billion yuan, and the R&D intensity was higher than the overall level.

Central and state-owned enterprises maintain steady growth. The central and state-owned enterprises on the SSE Main Board recorded a total operating revenue of 40.75 trillion yuan, a slight decrease of 1.3% year-on-year, and a net profit of 4.00 trillion yuan, a year-on-year increase of 4.4%, 3.5 percentage points higher than the previous year. Among them, the growth momentum of central enterprises under the State Council was even stronger, with net profit increasing by 5.7% year-on-year, a further increase of 2.4 percentage points. While achieving steady progress in operating performance, central and state-owned enterprises have strengthened market value management and taken the initiative to integrate high-quality assets, stabilize investors' return expectations, and enhance market confidence. As of the end of 2024, the total domestic market value of central and state-owned enterprises on the SSE Main Board increased by 20% year-on-year.

VI. Industrial chains are strengthened through collective growth

Cluster development opens up a new pattern of strengthening industrial chains. In the field of ships, the full spectrum of high-end ship types is developed with the help of material technology. Baoshan Iron & Steel Co., Ltd.'s LNG marine invar steel broke the technology monopoly and took a key step toward high-end ships. China CSSC Holdings Limited's mid-to-high-end ship types accounted for more than 80% of the company’s total, with the fifth generation of large LNG ships developed, and the numbers of orders for diverse niche ship types ranked among the top in the world. CSSC Offshore & Marine Engineering (Group) Company Limited's 2400TEU methanol dual-fuel container ship reduced carbon emission by 30% compared with those with traditional fuels, fully meeting the IMO 2050 greenhouse gas emission reduction target and becoming a hard-core equipment for international shipping giants to gain presence in the green shipping segment. In the automotive field, the growth of leading vehicle manufacturers as chain leaders are driving the upgrading of niche segments such as battery, motor and electronic control systems and intelligent driving. Fuyao Glass Industry Group Co., Ltd. launched the world's first mass-produced 5G antenna glass. Ningbo Joyson Electronic Corp.'s intelligent cockpit domain controller entered the high-end market. Bethel Automotive Safety Systems Co., Ltd.'s wire-controlled brake system (WCBS) ended its dependence on overseas technology. More than 80 parts companies formed a collaborative network covering aluminum alloy die casting, lightweight chassis, car light control, tire pressure monitoring, etc., continuing to make advancements in product performance, marketing channels, mid-to-high-end supporting facilities, etc.

Upstream and downstream companies strive to supplement and strengthen the industrial chain. In the chemical industry, an integrated whole-chain development strategy helps build a moat for the industry that drives transformation from traditional to new chemical materials. Hengli Petrochemical Co., Ltd. connected the entire chain of "petroleum refining-polyester-chemical fiber" to achieve import substitution of high-end chemical raw materials. Wanhua Chemical Group Co., Ltd. became the world's largest MDI and TDI supplier relying on its deeply integrated polyurethane industry chain. Anhui Wanwei Updated High-Tech Material Industry Co., Ltd. broke the overseas monopoly with its closed-loop industrial chain of "calcium carbide-VAC-PVA-optical film-polarizer" and firmly sat at the forefront of PVA industry. In the power sector, the construction of a new-type power system drives breakthroughs and innovation among enterprises in the generation-transmission-distribution chain. NARI Technology Co., Ltd. proposed a new principle of relay protection that adapts to the “dual-high” characteristics and makes breakthroughs in the key technology of relay protection in the new-type power system. Henan Pinggao Electric Co., Ltd.'s 550 kV capacitorless circuit breaker made a revolutionary breakthrough in breaking performance, solving the bottleneck problem of reliance on imported capacitors. The industrial chains are steadily advancing globally. Since 2024, more than 200 companies have disclosed overseas capacity investment announcements.

VII. A diversified foreign trade pattern is taking shape

Export markets are showing a diversified pattern. In 2024, the overseas revenue of the companies on the SSE Main Board reached 6.09 trillion yuan, up 7% year-on-year. Among them, non-US exports accounted for more than 80%, showing an upward trend year-on-year. ASEAN, Africa and countries along the Belt and Road Initiative have become important export destinations. Sany Heavy Industry Co., Ltd.'s product sales covered more than 150 countries and regions, with performance in Africa increasing by 44% year-on-year. SAIC Motor Corporation Limited's sales in the ASEAN region reached 130,000 units, a year-on-year increase of 30%, of which new energy vehicles accounted for 43%. CRRC Corporation Limited signed new orders for international business of approximately 47.2 billion yuan, making a major breakthrough in the high-end market in the Gulf Arab region. Sumec Corporation Limited's total import and export volume with countries and regions participating in the Belt and Road Initiative reached USD 5.6 billion. The eight central construction enterprises actively expanded overseas markets, with a focus on countries and regions participating in the Belt and Road Initiative. Their projects mainly concentrated in Africa, the Middle East, Southeast Asia and other regions, registering a total of 1.87 trillion yuan of new overseas orders, a remarkable 15% increase year-on-year.

Export products contain more "new" elements. Exports of high-tech products such as high-end equipment, integrated circuits, smart home appliances, and electric vehicles are accelerating, driving overseas revenue growth of industries such as electronics, automobiles, household appliances, and mechanical equipment to 15%, 10%, 9%, and 7%, respectively. Ningbo Orient Wires & Cables Co., Ltd. continued to explore international submarine cable market and delivered the first European offshore wind power ultra-high voltage submarine cable. GigaDevice Semiconductor Inc.'s NOR Flash memory products continued to lead the world, and its product matrix such as 32-bit general-purpose MCU continued to improve, with shipments hitting a record high. Haier Smart Home Co., Ltd. adhered to the high-end brand-building strategy, ranking first in the market share of large home appliances in Asia, North America and Australia. At the same time, benefiting from the rise of new business models such as cross-border e-commerce and live-streaming sales, a number of cutting-edge domestic products were sold well overseas, driving growth in overseas business revenue in industries such as light manufacturing, commercial retail, and food and beverage. Zhejiang China Commodities City Group Co., Ltd.'s cross-border clearing amount exceeded USD 4 billion throughout the year, establishing a global trade network covering multiple emerging markets. Jason Furniture (Hangzhou) Co., Ltd. was deeply committed to the overseas expansion of its own brand, with cross-border e-commerce sales increasing year by year, ranking first in global sales of the sofa category.

VIII. A number of M&A deals take place following the release of M&A Six Opinions

From 2024 to the end of the first quarter of 2025, the companies on the SSE Main Board have initiated more than 1,500 new M&A transactions with a combined amount exceeding 1.4 trillion yuan, showing continued growth in activity. Among them, more than 1,400 non-major transactions were newly disclosed, with a combined amount of more than 1 trillion yuan; the number of new disclosures of major restructuring plans increased by 68% year-on-year, and the total transaction amount exceeded 410 billion yuan, an increase of 370% year-on-year.

Iconic and innovative cases are being implemented. Merger transactions are in the ascendant. Guotai Junan Securities Co., Ltd.'s merger with Haitong Securities Company Limited and China CSSC Holdings Limited's plan to merge with China Shipbuilding Industry Company Limited both exceeded 100 billion yuan. Xiangcai Co., Ltd.'s plan to merge with Shanghai DZH Limited was the first merger between private listed companies with different controllers in recent years. Privatization acquisitions of listed companies continue to emerge, such as Grandblue Environment Company Limited's acquisition of Hong Kong-listed Canvest Environmental Protection Group Co., Ltd., and Enn Natural Gas Co., Ltd.'s plan to issue H shares to privatize Hong Kong-listed ENN Energy Holdings Limited. Acquisitions of high-quality but unprofitable assets took place for the first time, such as Haitian Water Group Co., Ltd.'s acquisition of Heraeus Photovoltaics' silver paste business. With more abundant payment tools, China Shipbuilding Industry Group Power Co., Ltd. planned to issue targeted convertible bonds to acquire diesel engine power assets.

M&As along the industrial chain amplify the size effect and strengthen the basis of the main business. Industrial M&A and shareholder capital injection remain the core logic of M&A transactions, accounting for nearly 70%. Traditional industries are using asset restructurings to promote business integration and concentration. For example, Huadian Group injected a number of power generation assets into Huadian Power International Corporation Limited to scale up the company's installed capacity under control and improve market competitiveness; Mudanjiang Hengfeng Paper Co., Ltd. planned to purchase Sichuan Jinfeng Paper Co., Ltd. to increase cigarette paper production capacity and form regional complementarity. Emerging industries are carrying out M&As to develop the industrial chain and enhance key technologies. For example, GigaDevice Semiconductor Inc. acquired the controlling stake of Suzhou Xysemi Electronic Technology Co., Ltd., an analog chip company, to expand its analog product offerings and improve its technology and talent reserves. Meihua Holdings Group Co., Ltd. acquired assets related to Kyowa Hakko Bio Co., Ltd. to obtain amino acid fermentation strains and related patents, and improve its fermentation and refining capabilities.

IX. Companies assume major responsibility to enhance quality and efficiency

Since 2024, 946 or nearly 60% of companies listed on the SSE Main Board have disclosed "Corporate Value and Return Enhancement" action plans, exceeding 90% of the SSE 50 and 180 Index companies. Among the companies that have disclosed action plans, nearly 90% reported profitability, and close to 50% achieved performance growth in 2024. The return on equity for real-economy-based enterprises stood at 7.63%, while the total asset turnover was 0.70, both exceeding the overall market levels, validating the effectiveness of the "Corporate Value and Return Enhancement" actions.

Dividend payouts reached new heights, and the trend of multiple dividend distributions within a year is a new highlight. In 2024, 1,259 companies listed on the SSE Main Board announced cash dividends, representing 93% of profitable companies. The total dividend amount reached 1.77 trillion yuan, reflecting a 6% year-on-year increase. The overall dividend payout ratio reached 39%, an increase of 0.83 percentage point compared to the previous year, with a dividend yield of 3.6%. Of these, 1,041 and 447 companies had a dividend payout ratio exceeding 30% and 50%, respectively, while 90 companies offered a dividend yield of above 5%. The stability of dividend distribution has been continuously strengthened. For three consecutive years, 1,038 companies or 61% implemented dividends, 701 maintained a payout ratio exceeding 30%, and 172 achieved a dividend yield of over 3%. The trend of multiple dividend distributions within a year has emerged. Throughout the year, 366 companies implemented interim dividend distributions totaling 574.9 billion yuan, marking increases of 3.4 times and 1.9 times in participant count and RMB amount year-on-year. Dividend payouts before the Spring Festival exceeded 280 billion yuan. Over 140 companies have already incorporated their 2025 interim dividend distribution plans into their agendas.

Share repurchases and holding increases have doubled, and remarkable results have been achieved due to the guidance and support from special loans. In 2024, companies on the SSE Main Board disclosed 400 new repurchase plans, and 380 shareholding increase plans by significant shareholders, both doubling year-on-year. The upper limits for proposed share repurchases and holding increases reached 84.3 billion yuan and 53.7 billion yuan, respectively, reflecting year-on-year growth rates of nearly 70% and over 80%, respectively. Notably, 82 companies disclosed both share repurchase and holding increase plans, showing a combo of market stabilization efforts. Since 2025, the scale of the share repurchase and holding increase plans has grown by another 78 billion yuan, involving more than 220 companies. The guidance and support from special loans for share repurchases and holding increases have delivered significant results. Since the inception of this loan in September 2024, the SSE Main Board has disclosed 205 announcements regarding the use of special loans for share repurchases and holding increases, with a total loan amount exceeding 52 billion yuan. A total of 11 central SOEs such as China Petroleum & Chemical Corporation and COSCO Shipping Energy Transportation Co., Ltd. took the lead, receiving a total of 6 billion yuan in initial loan allocations. Private enterprises also actively responded, with Haier Smart Home Co., Ltd. and San'an Optoelectronics Co., Ltd. both securing over 1 billion yuan in loan support.

X. ESG ratings saw significant progress

In 2024, 1,068 companies on the SSE Main Board disclosed separate ESG-related reports, with a disclosure rate of about 63%, an increase of 6 percentage points year-on-year, setting a new record high. The number of companies that voluntarily disclosed such reports increased to 861, and 837 companies disclosed ESG-related reports for more than three consecutive years. At the same time, the companies on the SSE Main Board made significant progress in global ESG rating rankings. Data shows that by the end of 2024, 306 companies on the SSE Main Board were included in the MSCI ESG ratings. Among them, 90 companies were upgraded in the latest rating, 9 companies' ratings jumped up by 2-3 levels, and 8 companies received AAA ratings, which are at the world's leading level. Among the 296 companies included in the MSCI rating for two consecutive years, the number of companies above A rating increased from 37 to 49.

Guided by the ESG concept, companies on the SSE Main Board practice social responsibility in multiple ways. In terms of stabilizing employment, the total number of employees remained stable overall in the past three years, with each company providing nearly 10,000 jobs on average. Calculated as a percentage of GDP, it is expected that they have indirectly driven more than 240 million jobs, or nearly 30% of the national employed population. In terms of protecting people's livelihood, more than 50 agricultural, forestry, animal husbandry and fishery, agrochemical products enterprises, more than 50 coal, oil and natural gas mining and refining enterprises, and more than 70 power and gas companies are making every effort to stabilize production and ensure supply, and jointly build a solid foundation for food and energy security. In terms of energy conservation and environmental protection, during the reporting period, the total environmental protection-related funds exceeded 180 billion yuan, more than 1,300 companies took carbon reduction measures, and the annual carbon dioxide emission equivalent was reduced by 1.14 billion tons. In terms of rural revitalization, more than 830 companies promoted rural reform and development through financial, consumption, industrial, employment assistance and other measures.

XI. Index-based investing attracts long-term funds

The index-based investing market represented by ETFs has reached a new level. In 2024, the net inflow of SSE ETFs was nearly 840 billion yuan, of which broad-based index ETFs had a net inflow of nearly 700 billion yuan. There were nearly 10 million accounts trading the SSE ETFs. Total market value of ETFs hit 2.7 trillion yuan, including 2.1 trillion yuan of stock ETFs, up 73% and 96% from the end of 2023, respectively. In terms of trading activity, the turnover of SSE ETFs ranked first in Asia. In 2024, the overall turnover was nearly 30 trillion yuan, with an average daily turnover of 135.7 billion yuan, up 52% from 2023; the turnover of stock ETFs reached 11 trillion yuan, and broad-based index ETFs accounted for more than 60%. In terms of product offering, bond ETFs continued to expand, and at the same time, multiple categories of products were launched, such as central SOEs ETFs, dividend ETFs, and green-themed ETFs.

International capital is taking a more active part in the Chinese investment market. In 2024, 703 companies listed on the SSE Main Board received additional 389.3 billion yuan of foreign holdings. The scale of foreign holdings represented by Northbound (SSE) Stock Connect investors, QFIIs and RQFIIs increased by 10% over the previous year, and non-US holdings accounted for nearly 80%, an increase of 11% year-on-year. From the perspective of foreign investment preferences, holdings were mainly concentrated in industries such as banking, food and beverage, non-bank finance, public utilities, and power equipment; transportation equipment, national defense and military industry, and automobile industries had the highest growth rate in holdings.

XII. Diverse exit channels function more smoothly

Regular delisting mechanism continues to consolidate. Since 2025, 19 companies on the SSE Main Board either triggered or undergone various delisting procedures. Among these, 12 companies were forcibly delisted. Specifically, 5 companies were delisted for missing the trading threshold, 4 companies were delisted due to financial deterioration, and 3 companies faced delisting due to major legal violations. Additionally, 31 companies triggered financial delisting following the disclosure of their annual reports and were given delisting risk warnings.

Diverse exit channels are constantly expanding. Voluntary delisting, mergers, and complete asset replacement are crucial channels for delisting. Since the beginning of the year, 2 companies have voluntarily delisted, 2 companies have completed or initiated mergers, and 3 companies are advancing complete asset replacement processes. Diverse exit strategies, such as voluntary delisting, account for 37% of total delistings. In addition, 5 companies reduced their financial burdens and improved their operational status through bankruptcy restructuring.

Risk mitigation efforts have paid off. Some companies with risk warnings on the SSE Main Board proactively undertook effective measures throughout 2024 to improve quality and efficiency, such as improving their core business operations, engaging in M&A, and adopting debt restructuring strategies, which has resulted in initial progress in risk mitigation. Following the disclosure of their 2024 annual reports, 11 companies are expected to meet the conditions for removing their delisting or risk warnings, and have formally submitted applications to terminate delisting or other risk warnings in accordance with regulations. Currently, 6 companies have completed the process of removing delisting or risk warnings.