BEIJING — Strong performance of Chinese listed companies in the first half offered a glimpse into the strength and positive changes in the country’s economy.
Listed companies on the A-share market were required to file their second-quarter reports with the Shanghai and Shenzhen stock exchanges before the end of last month.
Combined revenues of all listed companies on the market stood at 20.81 trillion yuan (about $3 trillion) in the first half, while the net profits were about 2 trillion yuan, both rising by more than 10 percent year-on-ear, new data from the bourses showed.
Firms listed in Shanghai saw revenue and profit growth rates at 11 percent and 14 percent respectively, while companies listed in Shenzhen witnessed rates of 17.24 percent and 16.86 percent.
As the country moved to enhance support for the real economy, Shanghai-listed companies in the real economy reported revenue growth of 13 percent and profit growth of 25 percent, much faster than the 7-percent revenue and profit growth of financial companies there.
Firms in the real economy contributed 41 percent to the net profits of companies on the Shanghai bourse, up 4 percentage points from the previous year.
The China Banking and Insurance Regulatory Commission (CBIRC) said last month that it had encouraged banks and insurance companies to increase funding to meet the financing demand of the real economy.
The commission urged banking and insurance institutions to make full use of current favorable conditions including abundant liquidity and declining financing costs to raise their financing support for the real economy.
In H1, Shanghai-listed companies in the real economy reported total financing of around 4.5 trillion yuan, up 9 percent year-on-year, with the majority of the financing coming from the banking system.