After three straight years of losses (2021–2023), the FTSE China RIC Capped Index is showing signs of a fragile recovery, now up more than 18% in US dollar terms year-to-date through June 26. The recovery is led by gains in the communications, financial, tech and healthcare sectors, which are prompting investors to shift from caution in China to curiosity.
Amid the technology sector’s summer rebound, we encountered some chatter about a new nickname (Wall Street loves nicknames) that may or may not stick — China’s Prominent 10. Like the Magnificent Seven, the “Prom 10” is what Goldman Sachs analysts are calling China’s own power bloc of giant, publicly owned enterprises that appear well-positioned to help drive growth and innovation. The corporations span various sectors and industries, including e-commerce, gaming, media, biotechnology, smartphones and electric vehicles (EVs).
What makes the Prominent 10 notable isn’t just their scale or sector reach but their relatively modest market share. Together, they represent just 17% of China’s total market capitalisation versus far higher concentrations in markets like the US or Germany. The group’s alignment with national policy priorities, including artificial intelligence (AI), consumer technology and global competitiveness, positions them at the forefront of China’s next phase of modernisation.
