Quarterly earnings growth augurs well for A-share firms

10 May

Quarterly earnings growth augurs well for A-share firms

Improved earnings of companies listed on mainland bourses during the first quarter of the year augur well for the full-ye

ar financial results and are an indication of the vitality the Chinese economy, analysts said.

During the January to March period, aggregate profits of A-share compan

ies topped 1 trillion yuan ($147.6 billion) and grew 9.4 percent year-on-year, reversing a fu

ll-year decline of 1.9 percent last year, data from Shanghai-based information provider Wind Info showed.

Meanwhile, aggregate return on equity (ROE)-a major gauge of

profitability-stood at 9.8 percent, intact from the whole-year of 2018.

“Given that the downtrend in economic growth had largely eased by the end of the first quarter, the aggregate ROE of A-shar

e companies has probably hit the bottom,” said Xu Gao, chief economist at Everbright Securities Asset Management Co Ltd.

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