Listed companies’ performance improves in 2017 amid reforms

Source:Xinhua Published: 2018/5/13 20:48:40

Listed firms in China had a better performance in 2017 due to a firming economy and structural reforms, with businesses in emerging technology industries reporting stellar profits, an official of the China Securities Regulatory Commission (CSRC) said on Friday.

More than 3,500 companies listed in Shanghai and Shenzhen reported combined net profits of 3.36 trillion yuan ($533.33 billion), up 19.1 percent year-on-year, CSRC spokeswoman Gao Li told a briefing in Beijing. Revenues went up 18.8 to 39.25 trillion yuan.

"The performance of listed companies kept improving and there was higher profitability," Gao said. Profits of companies on the main board and the small and medium-sized board gained about 20 percent last year.

Analysts said the solid economy provided the basis for better profits. GDP expanded 6.9 percent in 2017, accelerating for the first time in seven years.

Emerging technology companies led the gains as China's economic transition started to move domestic industries up the value chain. Advanced equipment manufacturers profit rose 91.8 percent, followed by 27.2 percent for biomedicines and 22.6 percent for new materials.

Businesses in emerging sectors had nearly 400 billion yuan of profits, up 21.8 percent.

Bucking the trend, 6.3 percent of the companies reported losses, down from 6.92 percent in 2016.

Firms on the ChiNext Board reported a combined profit decline, weighed down by two loss-making companies.

Posted in: COMPANIES

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