The cityscape of Dongguan. (Image source: Photo Network)
Recently, Guangdong DTECH Co., Ltd. successfully listed on the Hong Kong Stock Exchange, becoming Dongguan's first company to achieve a dual listing on both the A-share and H-share markets. This new listing, alongside other major companies from Dongguan, has been instrumental in propelling the city into the exclusive club of "dual-trillion cities."
Current data indicates that only 20 cities nationwide have achieved the dual milestone of a GDP exceeding one trillion yuan and a total market capitalization of listed companies surpassing one trillion yuan. In the ranking of market capitalization growth for these trillion-GDP cities in the first half of this year, the top ten cities by total market cap increase were Wuhan, Dongguan, Suzhou, Wuxi, Yantai, Nantong, Shanghai, Tianjin, Chengdu, and Shenzhen.
As of June 30th this year, the combined market capitalization of the 64 A-share listed companies based in Dongguan, a city with a trillion-yuan GDP, exceeded 1.4 trillion yuan. This represents a staggering increase of 76.25% in the first half of the year, securing the second-highest growth rate, just behind Wuhan's 80.99%.
It is noteworthy that Dongguan did not add any new A-share listings during this period. The entire 76.25% surge stemmed entirely from the valuation uplift of its existing listed companies.
Historically viewed as the "world's factory," Dongguan's economy has not been characterized by strong financial attributes. However, its deep integration into the AI computing power supply chain has led to a sustained revaluation of its leading local enterprises amid the AI wave, ultimately pushing the total market cap of its listed companies past the trillion-yuan threshold mid-year. As AI reshapes global industries, the financial world is concurrently reassessing the new value proposition of this manufacturing hub.
Catalysts Behind the 'Dongguan Sector' Surge
The primary driver behind Dongguan's soaring market valuation is the global wave of AI computing power demand. Shengyi Technology Co., Ltd. has been the undisputed leader in the Dongguan sector's surge this year. This copper-clad laminate manufacturer, which started in Dongguan, saw its stock price rise 205% last year and surged over 40% in April alone this year. On June 17th, its market capitalization broke through 400 billion yuan, reaching 437.6 billion yuan. Since the beginning of the year, its valuation skyrocketed from approximately 200 billion yuan to 400 billion yuan in less than two months. This single company now accounts for nearly 30% of the total market cap of Dongguan's listed firms.
Shengyi Electronics and DTECH followed closely, both entering the ranks of companies with market capitalizations exceeding 100 billion yuan. On April 27th, during the midday session, Shengyi Electronics entered the "100-billion club" with a total market cap of 100.401 billion yuan, becoming Dongguan's second listed company to surpass the 100-billion-yuan mark and its first on the STAR Market to do so. The company is strategically positioned in mid-to-high-end markets such as servers and AI computing power. DTECH saw its market cap exceed 100 billion yuan on May 15th and subsequently climbed to a high of 200 billion yuan in mid-June. As the global market share leader in PCB micro-tools for three consecutive years, the company is a direct beneficiary of the AI computing power boom.
The combined force of these three 100-billion-yuan giants, along with a cohort of mid-sized companies that have doubled in value, has collectively elevated the entire "Dongguan sector." A common thread among these companies is their indispensable role in the AI computing power hardware supply chain.
Chip circuit board. (Image source: Photo Network)
An analysis reveals that the top ten listed companies in Dongguan by market cap growth are concentrated in sectors like electronic circuits, connectors, precision manufacturing, and instrumentation. While seemingly diverse, they form critical links in the AI computing power supply chain, encompassing everything from base materials, drill bits, and PCBs to precision structural components.
Taking Shengyi Technology as an example, as the world's second-largest supplier of copper-clad laminates, it already commanded a global market share of 13.7% as early as 2024. It is also the only domestic company to have obtained NVIDIA's M9-level certification for its laminates. Its high-end PCB products are perfectly positioned to meet the surging demand driven by the explosion in AI infrastructure construction.
Professor Lin Jiang from the Department of Economics at Lingnan College, Sun Yat-sen University, stated that Dongguan has accumulated decades of deep expertise in the electronics information industry chain. The primary reason for the sector's explosive growth this year is its fortuitous positioning at the precise moment of exploding demand for AI hardware. Consequently, the city itself is being rediscovered by the capital markets.
Dongguan cityscape. (Image source: Photo Network)
Reassessing the Capital Code of the 'World's Factory'
Dongguan, a city renowned for its manufacturing prowess, had long seen its listed companies' market capitalizations languish at low levels, lacking flagship enterprises with valuations in the hundreds of billions. The significant transformation in recent years stems from the city's newfound emphasis on the power of capital markets, systematically promoting corporate listings as a high-priority strategy.
In early 2026, Dongguan convened a high-level mobilization and deployment conference themed "Capital Empowerment, Service-Driven Enterprise Strengthening." It launched an upgraded version of the "Kunpeng Plan" and established a dedicated "1133" service system for enterprise listings. This initiative aims to break down institutional barriers, form specialized task forces to address listing bottlenecks, create green channels, and implement tailored "one enterprise, one policy" solutions to precisely meet corporate needs, thereby enhancing the quality and expanding the pipeline of companies preparing for listing.
To date, Dongguan is now home to 88 listed companies domestically and internationally, including 64 A-share listed firms. Both its growth in new listings and its total number rank first among all prefecture-level cities in the province. A pool of 343 companies are being nurtured as future listing candidates, forming a visible pattern of "listing a batch, cultivating a batch, and reserving a batch."
In the first half of this year alone, four Dongguan-based companies have passed the A-share IPO review, with 26 under review and 10 newly accepted for review. These metrics rank 4th, 5th, and 6th nationally, respectively, firmly placing Dongguan at the forefront in terms of quantity. These incremental companies are predominantly concentrated in strategic emerging industries such as semiconductors, high-end equipment, and new materials.
This year, Dongguan's listed companies have also accelerated their pace of mergers and acquisitions. Several listed firms are actively engaging in capital operations to forge second growth curves. For example, in 2025, HEC led a 28-billion-yuan acquisition of Chindata Group's China business. In June 2026, it further disclosed a restructuring plan to acquire a 70% stake in Dongshu No. 1 for approximately 8.05 billion yuan, aiming for full control of Chindata. This move deepens the company's integration from traditional manufacturing into the entire AI industry chain.
The liquid cooling sector is another key area for M&A activity involving Dongguan companies. Analysis shows that over six M&A deals involving Dongguan-based liquid cooling companies have been completed this year. Local listed companies like Xiangxin Technology, Jinfu Technology, and Dare Electronics have all made moves to enter the liquid cooling arena through acquisitions, building their second growth curves. External capital has also been actively acquiring Dongguan companies, often at high premiums.
Dongguan cityscape. (Image source: Photo Network)
The real change in Dongguan is not merely reflected in the market cap figures but in the underlying logic of how capital markets are reassessing this manufacturing city. In the past, investors looked at Dongguan for its production capacity and order books. Now, the focus is on whether this capacity can be integrated into the AI computing power supply chain.
Professor Lin Jiang remarked that the soaring market valuations of Dongguan's listed companies are just the first step. "After the market cap increases, the true test of the city's financialization maturity lies in whether these companies can solidify their second growth curves through strategic M&A and technological investments."
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