ZCZC
BCN-22
CHINA-ECONOMY-Q3
Listed firms’ Q3 financial results show resilience of Chinese economy
BEIJING, Oct. 27, 2018 (BSS/Xinhua) – Most companies listed on China’s A-
share market reported higher net profits in the first three quarters of 2018,
demonstrating the strength of the Chinese economy.
As of Thursday, 1,347 listed companies had released their Q3 financial
reports, with nearly 70 percent of them seeing year-on-year net profit
growth, according to Wind Info, a Shanghai-based financial information
provider.
Combined net profits of the listed firms reached 731.5 billion yuan (about
105 billion U.S. dollars) during the period, up 13 percent from a year
earlier, the data shows.
The main drivers of profit growth were cyclical industries, including
coal, steel and petrochemical sectors, as well as new industries including
advanced manufacturing and new energy.
The steel sector, like other cyclical industries, has benefited from the
supply-side structural reform, which has resulted in reduced production
capacity and higher quality.
Among 16 steel manufacturers that have released Q3 earnings, 10 registered
year-on-year net profit growth of above 50 percent in the period, according
to Wind Info.
Meanwhile, new industries maintained rapid expansion.
New energy battery producer Contemporary Amperex Technology, for instance,
saw its net profits in the first three quarters total 1.99 billion yuan, an
88.7-percent increase from a year earlier.
Listed firms in advanced manufacturing, including electrical automation
equipment and semiconductor manufacturing, posted faster profit growth,
according to research by Soochow Securities.
Official data shows the value-added output of high-tech and equipment
manufacturing industries increased 11.8 percent and 8.6 percent year on year
in the first three quarters, respectively, outpacing the 6.4-percent growth
rate for the overall industrial sector.
BSS/XINHUA/HR/1433