Employees work at a new energy vehicle plant in Weifang, Shandong province. China's listed companies, including telecommunications and new energy vehicle manufacturers, all posted hefty third-quarter profit growth. (Photo/China Daily)
More than 2,300 listed companies' forecasts of their third-quarter financial performance indicate they are likely to beat market expectations.
As of Oct 24, nearly 72 percent of them have already posted higher net profits year-on-year or were back in the black, according to data compiled by Wind, a leading corporate information provider.
The data add to a string of major indicators that the Chinese economy is on a steadier footing.
A breakdown of the company reports showed the country's economic restructuring and industrial upgrading continued apace, ensuring strength for future growth.
Traditional sectors such as steel, non-ferrous metals and coal mining were revitalized by the ongoing supply-side structural reform, while emerging industries and high-end manufacturing maintained fast expansion.
Of the 23 listed steel makers that released interim Q3 reports by Oct 17, 22 companies said they expect to reap a profit. And 19 expect net profits to more than double in the first three quarters of the year.
Angang Steel Company said its net profit would rise 236 percent year-on-year to 3.3 billion yuan (7.7 million) on the back of a recovering market demand and cost-efficiency moves.
The coal mining sector also saw improving profitability amid the country's efforts to cut excess capacity and improve efficiency.
Shanxi Xishan Coal and Electricity Power forecast its net profit will likely grow sixfold to 1.4 billion yuan in the first three quarters of this year, thanks to cuts to overcapacity and attempts to optimize both its product structure and marketing strategy.
As China transitions to an innovation－and services-driven economy, high-tech and emerging industries are picking up momentum. Telecommunications, new energy vehicles and organic light-emitting diode or LED manufacturers all posted hefty profit growth.
BOE Technology, a supplier of display products, said its profit might grow by a staggering 4,520 percent to 6.5 billion yuan in the first three quarters, as technological innovation spurred new businesses.
Overall, forecasts are in line with official data that profits of major industrial firms surged 21.6 percent in the first eight months, up from 8.4 percent during the same period of 2016.
GDP grew at a faster-than-expected 6.9 percent in the first half of the year, with the consumption and services sectors contributing a major share of the growth.
In view of the strong growth momentum, major international institutions, including the International Monetary Fund, the World Bank and investment banks, have raised their forecasts for China's growth this year.
At the annual meeting of the IMF and the World Bank in Washington on Oct 15, China's central bank governor Zhou Xiaochuan said the economy would likely expand 7 percent year-on-year in the second half.