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Policy support props up China's earnings in the run up to key party congress

Stagnant results further crystallize low efficiency

Beijing has managed to curb capital outflow and the yuan's depreciation, but darker clouds may be gathering over China's economy. (Photo by Kenji Kawase)

SHANGHAI -- China appears to have brought its economy to heel before this autumn's National Congress of the Chinese Communist Party. Growth continues at the 6%-plus level, while the yuan's depreciation and capital outflow have halted, for the time being at least.

Official data, notably gross national product, are often taken as a gauge of the state of the economy, but corporate earnings paint a somewhat different picture. For 2016, total net profit of mainland listed companies rose 5.5%, climbing just below the official GDP growth of 6.7%.

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