Second-Quarter Profit Decline in Chinese Listed Companies Signals Economic Challenges
Thursday, 12 September 2024, 06:05
Analyzing the Second-Quarter Profit Decline
Mainland-listed companies have experienced a 1.5% decline in profit for the second quarter, correlating with a weak domestic economy. According to Huafu Securities, revenue dropped 2%, marking a worrying trend.
Sector Performance Highlights
- Automakers and Electronics saw gains due to the rise of electric vehicles.
- Food and beverage companies moderated growth amid a fall in consumer demand.
- Property developers faced challenges, reflecting ongoing issues in the housing market.
Future Projections for Chinese Companies
Looking ahead, analysts like Zhu Bin and Chen Li foresee potential recovery. Chen argues that profit growth could return in the fourth quarter, while UBS Group anticipates a 7% profit growth for companies on the MSCI China Index.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.