Chinese Listed Companies’ Profits Drop for the First Time in Five Years

The performance of listed companies in China is deteriorating. The net profits of approximately 5,200 companies for the fiscal year ending December 2023 decreased by 3% from the previous period. This is the first time in five years that profits have decreased.

Real estate, which continues to be in a recession, has fallen into the red, which has spread to steel, building materials, and other industries. Only a few industries, such as automobiles, performed well. This reflects the Chinese economy, which is facing increasing deflationary pressure, and the US and Europe are nervous about low-priced exports of products such as steel and cars.

The data covers companies listed on mainland Chinese markets such as Shanghai and Shenzhen, and excludes financial companies.

Source : Nikkei