Editor's note: Cloud River Urban Research Institute recently released China Integrated City Index offering a comprehensive evaluation of 297 Chinese cities across economic, social, and environmental dimensions. Now in its ninth consecutive year, the index analyzes the achievements and challenges of China's urban development and offers future prospects. The following article focuses on the outstanding performance of the four first-tier cities — Beijing, Shanghai, Shenzhen, and Guangzhou, when measured against major global counterparts.

According to China Integrated City Index 2024, Beijing maintained the top position in the overall ranking among 297 Chinese cities at prefecture-level and above for the ninth consecutive year, followed by Shanghai at second, Shenzhen at third, and Guangzhou at fourth. The four first-tier cities demonstrated exceptional performance, with their combined GDP accounting for 12.7% of the national total.

Chinese cities posted remarkable economic growth in 2024. Among the four first-tier cities, Shanghai, Beijing, and Shenzhen ranked among the top 10 global cities by GDP, placing at fifth, sixth, and 10th, respectively, while Guangzhou ranked 14th.

In the global top 10 cities by GDP, the U.S. and China have a strong presence. The U.S. is represented by New York City, Los Angeles, and Houston, while Shanghai, Beijing, and Shenzhen feature for China. The rest of the list is rounded out by Tokyo, Paris, London, and Seoul.

This article selects three major international metropolises with strong capital markets — New York, Tokyo, and London — as benchmarks to comparatively analyze the outstanding performance of the four first-tier cities in China.

Driving by leading corporates, Chinese top cities surge globally

The rise of Chinese cities is underpinned by the leap forward of Chinese enterprises. Beijing is home to headquarters of 52 Fortune Global 500 companies, surpassing Tokyo (29), New York (16), and London (13). This cements Beijing's position as the city with the highest concentration of Fortune Global 500 headquarters, reflecting the robust momentum of Chinese enterprises and the fact that more and more China's State-owned enterprises are located in the capital. Shanghai hosts 12 Fortune Global 500 companies, while Shenzhen and Guangzhou have eight and six, respectively. Collectively, the four first-tier cities host 78 Fortune Global 500 companies, accounting for 15.6% of the global total.

In terms of the number of the top 100 most valuable listed companies by market capitalization in each country, Tokyo leads the concentration race, hosting 73 of Japan's top 100. London hosts 64 of the UK's top 100. New York hosts 15 of the US's top 100. Meanwhile, Beijing, Shenzhen, and Shanghai host 39, 15, and 12 of China's top 100, respectively. This data shows that, compared to Japan and the UK, large countries like the U.S. and China exhibit a multi-centric distribution in terms of high-market-cap enterprises.

Chinese cities are home to many valuable companies. Examine the total market capitalization of the top 100 companies concentrated in each city: New York's 15 companies have the highest total market cap. Beijing follows closely; the combined market capitalization of its 39 companies reaches 88% of New York's total, 1.1 times that of Tokyo's 73 companies, 1.3 times that of London's 64 companies, 2.6 times that of Shenzhen's 15 companies, and 5.6 times that of Shanghai's 12 companies. The leading enterprises across China's four first-tier cities have achieved a collective market capitalization that positions them as direct competitors to the world's top cities.

Unlisted unicorn companies valued at over $1 billion are also a key indicator of a city's economic vitality. According to data from the Hurun Global Unicorn Index, among these major cities, New York has the most with 119 unicorns, followed by Beijing with 78, Shanghai with 65, London with 49, Shenzhen with 35, and Guangzhou with 24, while Tokyo has the fewest with 7.

Beijing leads globally in the total value of unicorn companies, 1.6 times that of New York, 2.5 times that of Shanghai, 3 times that of London and Shenzhen, 3.5 times that of Guangzhou, and a remarkable 43.8 times that of Tokyo. This demonstrates the strong momentum of science and technology innovation enterprises in China's first-tier cities.

The four first-tier cities not only possess corporate strength that rivals the world's most powerful economies, but also show an extremely high level of concentration. These four cities concentrate 78 Fortune Global 500 companies, accounting for 63.4% of the nation's total of 123. 

Among companies listed on the four major main boards — Shanghai, Shenzhen, Hong Kong, and Beijing — 31.3% are concentrated in the four first-tier cities. The concentration of unicorn companies is also high, reaching 53.1%.

In terms of market capitalization, the total market value of China's top 100 most valuable companies currently accounts for 52.4% of the total market value of all listed companies nationwide.

Crucially, the market value of these top 100 companies — which command half of the national market cap — that is concentrated in the four first-tier cities reaches an even higher 78.4%. High-market-cap enterprises in China are thus highly centralized in the first-tier cities.

Zhou Muzhi, head of Cloud River Urban Research Institute, pointed out, "China's reform and opening up coincided perfectly with the IT revolution, fostering a large number of science and technology innovation enterprises. The emphasis on innovation-driven development during the 14th Five-Year Plan further accelerated the development of tech-innovation companies in fields such as electric vehicles, new energy, new materials, semiconductors, and AI."

He said that, driven by the wave of IT boom, the four first-tier cities have joined the ranks of global top metropolises and set the stage for the emergence of the three major city clusters: The Yangtze River Delta, the Pearl River Delta, and the Beijing-Tianjin-Hebei region.

Global sci-tech innovation hubs arise

The 14th Five-Year Plan (2021-2025) proposed supporting Beijing, Shanghai, and the Guangdong-Hong Kong-Macao Greater Bay Area to accelerate the construction of International Science and Technology Innovation Centers, aiming to build globally influential technology hubs.

As the core drivers of the three major International Science and Technology Innovation Centers, the four first-tier cities put up a strong showing and have become globally influential technological powerhouses.

Top-tier universities are one of the top cornerstones supporting scientific and technological innovation. Looking at the number of institutions ranked in the Top 500 of the Times Higher Education World University Rankings 2025: London has the most with 11, followed by Beijing with six, Shanghai with five, Guangzhou and Tokyo with three each, and Shenzhen and New York with two each.

High-level research institutions are also pillars of innovation. Examining the top 500 research institutions in the Nature Index: Beijing takes the lead with 20 institutions. Shanghai has nine, Guangzhou has eight, New York and London each have seen, Tokyo has three, and Shenzhen has two.

Enterprises constitute another key vehicle for technological innovation. Based on R&D investment from the world's top 2,000 R&D investors in the EU Industrial R&D Investment Scoreboard: Beijing's R&D spending has edged past Tokyo. Its R&D spending is 1.6 times that of Shenzhen, 2.6 times that of New York, 3.3 times that of Shanghai, 4.8 times that of London, and 12.2 times that of Guangzhou.

The results generated by this powerful infrastructure and massive investment are astonishing.

Looking at the volume of scientific publication papers from the World Intellectual Property Organization's (WIPO) Global Innovation Index 2025: Beijing ranks highest globally. It is 1.6 times the volume of the Shanghai-Suzhou cluster, 1.7 times the Shenzhen-Guangzhou-Hong Kong cluster, 2.9 times the Tokyo-Yokohama cluster, 4.4 times that of New York, and 5.8 times that of London.

Highly cited researchers (those whose papers rank in the top 1% by citations in their field) wield leading international influence.

According to Clarivate Analytics data on highly cited researchers: Beijing has the most globally, with numbers 3 times that of London, 3.7 times that of New York, 4.8 times that of Shanghai, 9.3 times that of Guangzhou, 17.1 times that of Shenzhen, and 20.2 times that of Tokyo. The density of highly cited researchers in China's first-tier cities underscores the deep pool of international influence found across numerous fields.

Finally, examining PCT Patent Applications from the WIPO Global Innovation Index 2025: The Tokyo-Yokohama cluster ranks highest globally. It is 1.1 times the volume of the Shenzhen-Guangzhou-Hong Kong cluster, 2.7 times that of Beijing, 3.2 times the Shanghai-Suzhou cluster, 9.9 times that of New York, and 19.4 times that of London. The Shenzhen-Guangzhou-Hong Kong cluster is now closing in on the Tokyo-Yokohama cluster.

Zhou Muzhi said, "During the 14th Five-Year Plan period, the four first-tier cities saw an astonishing explosion in both investment and output in sci-tech innovation, laying the foundation for the emergence of the three major International Science and Technology Innovation Centers."

He added, this achievement cemented China's huge success in global frontier technology fields and its leading position across the entire manufacturing industrial chain.

Development of capital markets and improvement of business environment

The rapid development of high technology, led by information technology, has accelerated interdisciplinary collaboration, promoting the deep global integration of industrial, technological, and capital chains, and giving rise to a large number of emerging industries and enterprises. Amid this wave of technological innovation, the capital market has been playing an increasingly pivotal role in corporate development, especially the support of stock markets and venture capital for tech-innovation firms.

New York stands as the world's premier financial hub in terms of total market capitalization, thanks to the immense size of the NYSE and Nasdaq. Its market value is overwhelming: 8.1 times Shanghai's, 9.2 times Tokyo's, 12.6 times Shenzhen's, and a remarkable 17 times London's.

According to the WIPO Global Innovation Index 2025, New York takes the lead in venture capital transaction. It is 1.1 times that of London, 1.3 times the Shanghai-Suzhou cluster, 1.6 times the Shenzhen-Guangzhou-Hong Kong cluster, 1.7 times that of Beijing, and 2.2 times the Tokyo-Yokohama cluster. This demonstrates robust VC transaction activity in China's first-tier cities.

High-level innovation and entrepreneurship require openness and mutual learning, and international meetings are critical venues for exchange and interaction.

According to the ICCA GlobeWatch: Business Analytics – Country & City Rankings, London hosts the most international meetings among major cities globally. It is 1.1 times that of Tokyo, 3.5 times that of New York, 3.8 times that of Beijing, 4.7 times that of Shanghai, 16.5 times that of Shenzhen, and 19.8 times that of Guangzhou. This suggests that the status of China's first-tier cities as major hosts for international conferences still needs to be enhanced.

London leads these cities with the highest volume of international air passenger traffic. It is 3.3 times that of Tokyo, 3.4 times that of New York, 5 times that of Shanghai, 11.3 times that of Guangzhou, 12.9 times that of Beijing, and 34.2 times that of Shenzhen. This data shows China's first-tier cities fall short in their ability to serve as platforms for international personnel exchange.

Hotels are an important vehicle for international exchange. According to the Forbes Travel Guide Star Ratings, New York leads the world in the number of highly-rated properties, slightly edging out London. It is 2.2 times that of Tokyo, 3.4 times that of Shanghai, 4.3 times that of Beijing, 15.7 times that of Guangzhou, and 23.5 times that of Shenzhen.

Research by Cloud River Urban Research Institute found a very high correlation between the development of a global city's technology industry and the number of high-end restaurants, suggesting that a good dining environment provides venues for international exchange.

Tokyo is the world capital of fine dining by the Michelin Guide's standards, leading globally in the number of starred restaurants. It is 2.1 times that of London, 2.3 times that of New York, 3.3 times that of Shanghai, 5.2 times that of Beijing, and 8.1 times that of Guangzhou. However, the Michelin Guide is just one of the gauges to rate high-end restaurants.

Zhou said, "The innovation economy is a typical exchange economy; its development relies on interaction and the collision of ideas between people, which entails a high level of openness and a pro-development environment in a city."

Ming Xiaodong, former first-level inspector of the Department of Development Planning of the National Development and Reform Commission and former minister-counsellor of the Chinese Embassy in Japan, noted the 2024 index is full of highlights, particularly its comparison of China's four first-tier cities with top international metropolises like New York, Tokyo, and London. 

He said China and the U.S. each have three cities in the global top 10 cities by GDP. This underscores the increasing global competitiveness of China's major cities.

He noted that the index is built on three metrics — corporate strength, scientific and technological innovation capacity, and the capital market and the business environment. Bolstered by robust data on the number of Fortune Global 500 companies, R&D investment, and PCT patents, it reveals the underlying logic of urban development and provides a benchmark for domestic counterparts.

He concluded that the index is objective and dialectical, as it delves into the strength of first-tier cities in terms of corporate market capitalization, scientific and technological output, and capital market vibrancy, while addressing shortcomings such as deficiencies of major international conferences hosted, air passenger, and high-end supporting facilities.