China’s listed companies boost R and D, ESG reporting

Listed companies in China invested 1.6 trillion yuan (nearly 221 billion U.S. dollars) in research and development (R and D) in 2023, achieving an overall R and D intensity of 2.21 percent, according to the China Association for Public Companies (CAPCO).

More firms also released individual sustainability reports on Environmental Social Governance (ESG) and social responsibility, said the association.

The increased R and D investment is aimed at enhancing productive capabilities and prepare for future industrial shifts, according to the association.

State-owned enterprises led the charge with an R and D expenditure totaling 770 billion yuan (over 106 billion U.S. dollars), representing 61 of the top 100 firms in R and D spending. Private companies showed strong innovation with an R and D intensity of 3.75 percent, surpassing the market average.

In 2023, the Shanghai Stock Exchange reported that its main board companies invested nearly 900 billion yuan (over 124 billion U.S. dollars) in R and D, marking a 5 percent increase from the previous year and extending a three-year growth streak.

Significant growth in R and D expenditure occurred in sectors of aviation, electricity, and telecommunications, with some industries' growth exceeding 30 percent.

The STAR Market of the Shanghai Stock Exchange also saw robust growth, with a 14.3 percent rise in R and D spending, totaling 156.1 billion yuan (about 22 billion U.S. dollars). Notably, 83 companies maintained an R and D intensity of over 20 percent for three consecutive years.

Data from the Beijing Stock Exchange show that in 2023, R and D investments of listed companies continued to increase, totaling 8.7 billion yuan (over 1.2 billion U.S. dollars) throughout the year, a year-on-year increase of 6.37 percent, achieving growth for three consecutive years.

Over 70 percent of these companies saw a year-on-year increase in R and D investments, with an average R and D intensity of 5.01 percent, and 36 companies' an R and D intensity exceeding 10 percent.

"The continuous growth in R and D inputs of China's listed companies is conducive to constant integration of sci-tech innovation into industrial development, promoting the emergence of new industries and the transformation of traditional industries on a par. This ongoing accumulation plays a crucial role in making breakthroughs in many frontier industries,” said Yan Xiang, chief economist at Hua Fu Securities.

On the environmental and social governance (ESG) front, CAPCO data showed that 2,115 companies issued sustainability reports in 2023, nearly 300 more than the previous year, representing 39.7 percent of listed firms. The financial sector registered the highest disclosure rate of 92.8 percent, significantly above the roughly 40 percent average across other industries.

Data from the Shanghai Stock Exchange show that in 2023, 952 companies on the main board disclosed specialized reports on Environmental Social Governance (ESG), social responsibility, and sustainable development, accounting for 56 percent of the total.

The SSE 50, a benchmark index of the 50 largest stocks on the Shanghai Stock Exchange, had a 100 percent disclosure rate, and over 90 percent of the companies listed in the SSE 180 -an index comprising the 180 largest stocks - also disclosed their ESG practices.

Market attention on ESG indices also increased as 138 indices were released by the end of the year. They include 104 stock indices, 31 bond indices, and 3 multi-asset indices, which are tracked by 86 funds totaling a value of 105 billion yuan (over 14.5 billion U.S. dollars).

The Beijing Stock Exchange showed similar engagement, with all companies disclosing social responsibility information in their annual reports. Fourteen companies went further, publishing detailed reports on their ESG efforts.

"Many listed companies' disclosures indicate that they are actively enhancing energy efficiency and reducing pollutant emissions through technological innovation and optimized management. More and more companies are disclosing detailed data on climate management targets, carbon dioxide reduction, and renewable energy usage. The newly implemented guidelines for sustainable development reports have clarified disclosure methods, which will continue to improve the quality and volume of information disclosure of listed companies in China," said Zhang Gang, chief analyst at Southwest Securities.

China’s listed companies boost R and D, ESG reporting

Chinese President Xi Jinping held a restrictive meeting with Russian President Vladimir Putin on Thursday at Zhongnanhai in Beijing, during which they had in-depth exchanges on strategic issues of common concern.

The world is undergoing changes unseen in a century and entering a new period of turbulence and transformation, Xi noted, adding that in the face of the ever-evolving world landscape with volatility and turmoil, China has maintained its strategic resolve.

He said that under the leadership of the Communist Party of China, the Chinese people have overcome various difficulties and challenges, and are striving to promote high-quality development and Chinese modernization.

China is willing to work with Russia and other countries to enhance solidarity and cooperation, steer global governance in the right direction, jointly safeguard international fairness and justice, and promote world peace and common development, Xi said.

Noting that China's development is unstoppable and that no force can contain China's growth and progress, Putin said that Russia is willing to improve cooperation with China and other Global South countries to promote international fairness and justice, and to work toward a more equal and multipolar world.

The two heads of state had an in-depth exchange of views on the Ukraine crisis.

Xi elaborated on China's consistent position and efforts to promote the political settlement of the Ukraine issue, stressing that to deal with any major issue, it is necessary to address both the symptoms and the root causes, and to plan for the present as well as for the long term.

He said the core of the Global Security Initiative is advocating the vision of common, comprehensive, cooperative and sustainable security, and the fundamental solution to the Ukraine issue is to promote the establishment of a new balanced, effective and sustainable security architecture.

Xi said China supports the convening of an international peace conference recognized by Russia and Ukraine at an appropriate time with equal participation and fair discussion of all options, so as to push for an early political settlement of the Ukraine issue, and China stands ready to continue to play a constructive role in this regard.

Putin introduced the relevant views and positions of Russia, saying that Russia appreciates China's objective, just and balanced position on the Ukraine issue and welcomes China to continue to play an important and constructive role in the political settlement of the issue. Russia is committed to resolving the Ukraine issue through political negotiations and is willing to demonstrate sincerity and maintain close communication with China in this regard, he said.

Xi said that over the years, they have had many meetings and every exchange has been candid, in-depth and fruitful.

Xi said he is ready to stay in close contact with President Putin and work together to steer the development of China-Russia relations in the right direction, guide the China-Russia comprehensive strategic partnership of coordination for the new era to achieve steady and lasting progress, bring more benefits to the two peoples, and contribute to world security and stability.

Putin thanked Xi for his warm hospitality, saying that he is willing to maintain close communication with Xi, implement the important consensus reached between them, and ensure the full development of the Russia-China comprehensive strategic partnership of coordination for the new era.

Xi holds restrictive meeting with Putin at Zhongnanhai

Xi holds restrictive meeting with Putin at Zhongnanhai

Xi holds restrictive meeting with Putin at Zhongnanhai