China's A-Share Leaders Shift From Liquor and Banks to Tech, Editor Says

What He Gang Said About China's Shifting Economic Drivers

Speaking at the launch of Sina Finance's "Entrepreneur Night 2026" in Beijing on November 6, He Gang, editor-in-chief of Caixin Media, offered a pointed assessment of where China's economy stands as 2026 draws to a close. His central argument: despite a year of K-shaped divergence — in which some industries boom while others struggle — Chinese companies have carved out notable paths forward, particularly in technology and green exports.

He Gang highlighted what he called a historic shift in China's A-share market. For years, the market's most valuable listings were dominated by liquor producers and banks. Now, he said, world-class emerging technology giants have finally listed on domestic exchanges, giving the A-share market a new profile. He credited this to Chinese companies rapidly closing gaps with global leaders in artificial intelligence, semiconductors, memory chips, new energy and new materials.

On trade, He Gang pointed to what he described as the "new four" export categories: integrated circuits, new energy vehicles, solar products and wind power equipment. Integrated circuit exports grew 90% year-on-year, while NEV exports rose 70%, he said. Three of the four categories are directly tied to green and energy-saving transitions, which he framed as a structural advantage built on China's full industrial supply chain.

He also acknowledged the costs of the transition. During the shift from old to new growth drivers, some workers have lost jobs, some companies have been forced to pivot, and some have lost ground. But He Gang argued that this very process demonstrates the resilience of Chinese enterprises and the broader economy, and that the pioneers and persistent operators are the "backbone" of China's economic confidence.

Why the A-Share Tech Shift Matters Beyond the Podium

Why He Gang's A-Share Observation Carries Weight

He Gang's remark that A-share top-tier listings are no longer just liquor and banks is more than a rhetorical flourish. For global investors, the composition of China's domestic equity market has long been a proxy for the country's economic model — heavy on financials and consumer staples, light on hard technology. If technology companies are genuinely rising to the top of the A-share market, it signals that capital allocation and listing incentives are shifting toward sectors Beijing has prioritized for strategic independence. That matters because A-share valuations influence domestic fundraising capacity, which in turn affects how quickly Chinese tech firms can scale research and production.

The Export Data Behind the Green Pivot

The 90% growth in integrated circuit exports and 70% growth in NEV exports are striking figures, though the source does not specify the base period or absolute values. For context, China's IC exports have been growing from a lower base as domestic chipmakers ramp up capacity, while NEV exports have benefited from aggressive overseas expansion by BYD, SAIC and others. He Gang's framing — that three of the "new four" export categories are green-related — aligns with a broader trend: China's export mix is shifting from labor-intensive goods toward higher-value, technology-intensive products. This has trade-policy implications, as the EU and US have already imposed tariffs on Chinese EVs and solar components, and further restrictions on chips remain a live risk.

K-Shaped Divergence and the Cost of Transition

He Gang's acknowledgment of a K-shaped economy is notable for its candor. A K-shaped recovery means some sectors and regions grow while others decline — a pattern that can widen inequality and social pressure. He mentioned job losses and business failures during the old-to-new transition, which suggests the government's structural adjustment is imposing real costs. For companies, this implies that access to capital, policy support and talent will increasingly favor tech, green energy and advanced manufacturing, while traditional sectors — property, heavy industry, some consumer goods — may face continued headwinds. Investors should watch whether Beijing introduces compensatory measures for displaced workers and struggling regions, as these could affect consumer demand and social stability.

What This Means for Global Competitors

If He Gang's assessment is accurate, Chinese tech firms are not just catching up but beginning to list as world-class entities on domestic exchanges. That could intensify competition in AI, semiconductors and new energy, particularly as Chinese firms benefit from state-backed financing and a large domestic market. For multinationals in these sectors, the implication is that Chinese competitors may have a lower cost of capital and stronger policy tailwinds than previously assumed. At the same time, the reference to a US stock market plunge and difficulties in AI hardware suggests external market volatility could spill over into Chinese tech sentiment, even as green demand remains robust.

What to Watch as China's Growth Engines Rotate

The most important insight: China's A-share market is undergoing a structural shift toward technology and green exports, but this transition is uneven and carries real economic costs.

For investors and business leaders with exposure to China, the signal is that capital and policy support are rotating toward semiconductors, AI, new energy and advanced manufacturing. Traditional A-share heavyweights — liquor and banks — may no longer be the default proxies for China exposure.

• Track A-share listing trends: Watch for IPOs or relocations of major tech firms to domestic exchanges, as these could reshape index composition and valuation benchmarks.
• Monitor export data: The 90% IC and 70% NEV growth figures need verification against official customs data; if sustained, they confirm a durable shift in China's export mix.
• Assess tariff exposure: Companies in EV, solar and semiconductor supply chains should model scenarios for further US or EU trade restrictions, given the political sensitivity of these sectors.
• Watch for social policy responses: If K-shaped divergence deepens, expect Beijing to introduce retraining, unemployment support or regional investment programs that could affect consumer spending and labor costs.

Key metrics to monitor: China's monthly customs export data for ICs and NEVs; A-share sector weightings for technology versus financials; and any new US or EU tariffs on Chinese green tech.