Mainland-listed companies experienced a collective decline in profit during the second quarter, attributed to a sluggish domestic economy. However, veteran analysts are optimistic about a potential growth rebound in the final quarter of the year.
According to Huafu Securities, profits for the 5,350 companies trading on the Beijing, Shanghai, and Shenzhen stock exchanges dropped 1.5%, with revenue also decreasing by 2%. This was a shift from the 4% profit decline seen in the first quarter after two consecutive periods of growth.
The lacklustre earnings season has further dampened investor confidence following disappointing economic data and a lack of significant stimulus measures. The latest reports indicate China’s ongoing deflation, contraction in manufacturing, and a slowdown in the services sector, leading to declining stock valuations.
Despite these challenges, sectors like carmakers and electronics manufacturers saw positive performance, driven by electric vehicle trends and global semiconductor industry recovery. However, food, drink, and appliance makers faced weaker consumer demand, potentially impacting third-quarter growth.
[ad_2]
Source link