China Mainland Corporate Earnings Are Still Very Weak

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Corporate earnings in mainland China are facing notable challenges, despite some positive economic indicators. Companies listed on the Chinese mainland are expected to see a combined net profit increase of only 5% to 10% next year. This sluggish growth reflects broader economic difficulties, such as deflationary pressures and a weak property market. While there are small signs of improvement, earnings remain under pressure due to these underlying issues. Overall, corporate profitability in China is still contending with significant headwinds.

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Sources:

www.yicaiglobal.com/news/chinas-govt-work-summit-paves-way-for-2024-profit-growth-chief-economist-says

www.jpmorgan.com/insights/global-research/economy/china-economy

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