Among the A-share trillion-dollar club, only one 'Made in Shenzhen' remains.

After the conclusion of the first half of the year, among the 11 stocks in the A-share "trillion market cap club," Shenzhen's "contribution" has seen a significant change: from the "Big Four" at the beginning of the year to just a "sole survivor"—Foxconn Industrial Internet. Former "club members" BYD, Ping An Insurance, and China Merchants Bank have all fallen below the surface.

According to Choice data, as of June 30 this year, only Foxconn Industrial Internet remains among A-share companies registered in Shenzhen with a trillion-yuan market cap, totaling about 1.43 trillion yuan. China Merchants Bank, Ping An Insurance, and BYD have total market caps (comprehensively calculating the stock prices and share quantities of different types of shares, calculating the market cap, converting exchange rates, and then summing them up) of 14.3k yuan, 911.44B yuan, and 839.13B yuan, respectively.

Behind the fact that three out of four Shenzhen A-share trillion-yuan market cap stocks have fallen out, what exactly happened?

BYD: Stock price has fallen nearly 40% from its high

Specifically, among the four companies, BYD was the earliest to exit the "trillion club," with the most significant stock price decline. As of the close on June 30, BYD's A-share stock price had fallen nearly 40% from its 2025 high, and its H-share stock price had even halved.

Behind the sluggish stock price is BYD's pressured sales and performance.

Data shows that since September 2025, BYD's monthly sales of new energy vehicles have declined year-on-year for eight consecutive months, only turning positive in May this year. In May this year, BYD sold 383.5k vehicles, a slight year-on-year increase of 0.26%. Although BYD's overseas sales maintained a relatively fast growth rate in the first five months of this year, cumulative sales still fell by about 20% year-on-year.

At the 2025 annual shareholders' meeting held in early June, BYD Chairman Wang Chuanfu directly mentioned the challenges the company faced. He stated that because the purchase tax on new energy vehicles will be adjusted from exemption to a 50% reduction starting in 2026, sales from November to December 2025 partially pulled forward some new energy vehicle sales. "For BYD, which only makes new energy vehicles and not fuel vehicles, the impact was significant in January-February this year."

Sales directly dragged down BYD's performance—in 2025, BYD's revenue grew 3.46% year-on-year, while net profit attributable to the parent fell nearly 19% year-on-year. In the first quarter of 2026, the company's revenue and net profit attributable to the parent both declined, with net profit attributable to the parent dropping over 55% year-on-year, and net cash flow from operating activities falling about 67% year-on-year.

In March this year, BYD released its second-generation blade battery and flash charging technology, and several new cars equipped with the second-generation blade battery have been launched one after another. Facing market expectations, Wang Chuanfu frankly admitted the real pressure on production capacity at the shareholders' meeting.

"Production capacity for the second-generation blade battery is still insufficient, and it is currently ramping up at an increment of 20,000 to 30,000 units per month," Wang Chuanfu said. This year, BYD's sales will depend on battery production capacity. The company will allocate resources well to fully tap into the production capacity of blade batteries.

According to BYD's latest production and sales report for June 2026, the company's new energy vehicle sales in the period increased 5.46% year-on-year to 403.5k units. In the first half of this year, BYD's cumulative sales of new energy vehicles reached 1.8085 million units, a year-on-year decline of 15.72%.

Currently, the implementation of the second-generation blade battery and flash charging technology has, to some extent, supported the improvement of BYD's product competitiveness. But whether the pace of capacity ramp-up can resonate with market demand will be key to this new energy vehicle leader regaining confidence in the capital market.

China Merchants Bank: The cyclical test continues

As the "retail king" of the banking industry, China Merchants Bank has long been valued higher than its peers due to the high growth and high profitability of its wealth management and credit card businesses. However, in recent years, the industry's net interest margin has continued to narrow, compressing overall profit margins. Coupled with weak consumer willingness to spend suppressing the credit card business and cyclical fluctuations in the capital market leading to a temporary decline in wealth management business, the profitability flexibility of the bank's retail business has significantly decreased, and its valuation premium has also narrowed.

China Merchants Bank's stock price trend over the past year

In 2025, China Merchants Bank's retail loan growth was significantly lower than corporate loans, with weak resident credit demand and declines in both credit card transaction volume and income; although the wealth management business bottomed out and rebounded in 2025, and in the first quarter of 2026, single-quarter fee and commission income increased 25.42% year-on-year, this business will repeatedly face tests of capital market uncertainty, peer catch-up, and cross-industry challenges, and the sustainability of growth still needs to be verified by the market.

In the first quarter of 2026, China Merchants Bank achieved revenue of 86.94 billion yuan and net profit attributable to the parent of 664.86B yuan, with the growth rates of both indicators falling short of expectations. Within one month after releasing its first-quarter report on April 28, China Merchants Bank's A-shares and H-shares fell by over 6% and 8%, respectively.

Changjiang Securities said in a research report that the market has divergent views on China Merchants Bank's first-quarter performance, mainly because since the second quarter of 2025, the bank's revenue growth has been consistently lower than that of state-owned banks, and in the first quarter of 2026, both revenue growth and net profit attributable to the parent growth were lower than those of state-owned banks, weaker than some investors' expectations. At the same time, the recovery of retail credit market sentiment still needs time, but some investors have overly high expectations.

The institution believes that from a long-term perspective, China Merchants Bank still has high-quality customer groups and a high-profit model, with wealth management income already reversed and gradually digesting retail risk fluctuations. It forecasts that ROE (return on equity) will remain above 12% over a three-year horizon. After this valuation adjustment, the dividend allocation value is significant.

China Merchants Bank's management has also taken note of the stock price adjustment. At a recent shareholders' meeting, China Merchants Bank's Board Secretary Peng Jiawen said that stock prices are affected by many factors, and what is more important is to run the bank's own operations well. China Merchants Bank attaches great importance to market value management, has established a market value management team with him as the team leader, and regularly holds market value management analysis meetings, continuously conveying the voice of the capital market at the meetings, and promptly transmitting market and shareholder demands into internal business strategies and dividend decisions.

Ping An Insurance: Short-term investment fluctuations drag down profitability

Since the beginning of this year, Ping An Insurance's A-share stock price has been volatile and has fallen more than 30% year-to-date as of the close on June 30.

From a performance perspective, Ping An Insurance has continued to deepen its transformation in recent years, achieving corresponding results, but they seem not yet to have translated into a comprehensive improvement in financial data. In the first quarter of 2026, Ping An Insurance's operating profit attributable to the parent rose 7.6% year-on-year to 40.78 billion yuan, while net profit attributable to the parent fell 7.4% year-on-year to 383.5k yuan.

The two indicators show completely different trends because Ping An Insurance, when calculating operating profit, excludes items in the income statement with high short-term volatility and one-off significant items that management believes are not part of daily operating income and expenditure, among others.

In the first quarter, Ping An Insurance's short-term investment fluctuation loss on life and health insurance business was -403.5k yuan, significantly expanded from -37.85B yuan in the same period of 2025, directly dragging down net profit performance.

Huayuan Securities said in a research report that it is optimistic about the growth of Ping An Insurance's life insurance NBV (new business value) in 2026, driven by bancassurance channels and individual insurance channel product operations. It also believes that with the continuous recognition of asset impairments, the pressure on the company's bad debt provisions is expected to ease. However, the institution believes that 2026 may mainly test the company's ability to control investment return volatility after a significant increase in equity positions.

Over the past year, three out of four Shenzhen-made trillion-yuan market cap companies have fallen. Behind the ups and downs in numbers, on the one hand, it reflects a shift in market style, and on the other hand, it mirrors industrial transformation and upgrading. Whether it's Foxconn Industrial Internet's "latecomer surpassing" or the former giants "sinking," after stripping away short-term market sentiment and noise, only by continuously improving risk resistance, enhancing core competitiveness, and building real cash-generating ability amid cyclical fluctuations can they achieve steady and long-term development. A trillion-yuan market cap is a mirror for reflection.

Source: Shanghai Securities News

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