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.
China 🇨🇳 Mainland Corporate Earnings Are Still Very Weak pic.twitter.com/kUGFdte67a
— Win Smart, CFA (@WinfieldSmart) October 11, 2024
Sources:
www.jpmorgan.com/insights/global-research/economy/china-economy
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