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Economy

Corporate China faces earnings headwinds

Chinese banks, such as the Agricultural Bank of China, are suffering a dent in profit as they clear bad debts.   © Takaki Kashiwabara

SHANGHAI -- Listed Chinese companies logged a decrease in combined January-June net profit due to an economic slowdown and efforts to address industrial overcapacity and bad debts, on the heels of the first full-year decline in seven years in 2015.

Comparable year-earlier data was available for 2,928 enterprises on the Shanghai and Shenzhen bourses. They logged a combined profit of 1.38 trillion yuan ($206 billion) for the half, down 5%, financial data from Shanghai DZH shows. The decline reaches double digits if banks are excluded.

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