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Survey finds depressed growth forecasts for China-listed firms in 2015

A survey of analyst estimates of 2015 net profit for 704 mainland-listed firms found expected growth averaged 7%, down from 7.7% in 2014 and a spike of 18% in 2013, Reuters reported. Difficulties in the financial sector appear to be driving the decline as banks grapple with rising bad loans and a slowing property market. Energy companies are also struggling with a drop in oil prices and coal oversupply that has driven down prices. The earnings slowdown has so far failed to register in China’s surging stock markets, and brokerages have seen commission income skyrocket due to high trading volume.

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