ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print

China Inc. sees profits soar but will the rally last?

Resource prices uptick and government support may prove short lived

A steel factory in Hebei Province: The industry saw net profit surge in the first half of 2017.   © Reuters

HONG KONG/SHANGHAI Corporate China is suddenly making a lot more money again. Net profit for listed companies in the first half grew 16% on the year, helped by rising resource and property prices along with state-supported infrastructure spending.

Companies for which comparable 2016 figures are available logged a total profit of 1.67 trillion yuan ($254 billion) in January-June, according to data from Shanghai DZH, recovering from a 4% drop a year earlier. The research company surveyed 3,357 businesses, covering almost all of those listed on the Shanghai and Shenzhen bourses, many of which are dual-listed in Hong Kong. Revenues climbed almost 20% over the same period to 18.16 trillion yuan.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more