Solid economy boosts listed firms' results
By Joy Wang |
October 29, 2010, Friday
|
Print Edition
Print Edition
CHINA'S listed firms benefitted from a favorable economic and investment climate to post a surge in net profit in the first nine months of the year, according to data released yesterday.
The net earnings of 1,232 public firms soared 52.42 percent from a year earlier to 197.5 billion yuan (US$29.5 billion) through September, according to quarterly reports already published. The pace strengthened from a 41.17-percent rise in the first half of the year.
Companies in the non-ferrous metal, steel, chips and machinery equipment production sectors led the profit growth thanks to rising prices of major commodities in global markets.
"China's solid economy and relatively easy monetary policies helped to fuel companies' growth this year," said Zhang Qi, an analyst at Haitong Securities Co.
"With the global economic outlook continuing to improve, companies may deliver even better results in their annual reports," Zhang predicted.
But Zhang pointed out that leading profit earners such as non-ferrous metal and steel companies are too easily affected by price fluctuations in global markets.
"It is difficult to predict their performance because prices are too volatile," Zhang said.
The net earnings of 44 non-ferrous listed enterprises jumped 19 folds from a year earlier in the first three quarters, according to Wind, a data analysis company.
The stable performance of the listed firms has bolstered investor confidence in the market, with the Shanghai Composite Index rising nearly 15 percent this month and 27.6 percent from its 2010 low on July 5.
The net earnings of 1,232 public firms soared 52.42 percent from a year earlier to 197.5 billion yuan (US$29.5 billion) through September, according to quarterly reports already published. The pace strengthened from a 41.17-percent rise in the first half of the year.
Companies in the non-ferrous metal, steel, chips and machinery equipment production sectors led the profit growth thanks to rising prices of major commodities in global markets.
"China's solid economy and relatively easy monetary policies helped to fuel companies' growth this year," said Zhang Qi, an analyst at Haitong Securities Co.
"With the global economic outlook continuing to improve, companies may deliver even better results in their annual reports," Zhang predicted.
But Zhang pointed out that leading profit earners such as non-ferrous metal and steel companies are too easily affected by price fluctuations in global markets.
"It is difficult to predict their performance because prices are too volatile," Zhang said.
The net earnings of 44 non-ferrous listed enterprises jumped 19 folds from a year earlier in the first three quarters, according to Wind, a data analysis company.
The stable performance of the listed firms has bolstered investor confidence in the market, with the Shanghai Composite Index rising nearly 15 percent this month and 27.6 percent from its 2010 low on July 5.
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