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Shanghai-listed firms' H1 profits drop, Shenzhen's SMEs rise

Thursday, September 1, 2016 - 09:49

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China's main two bourses reported diverging fortunes in the first half of the year, with larger, often state-owned, listed firms in Shanghai seeing profits tumble while smaller start-ups on the Shenzhen Exchange saw profits rise.

[SHANGHAI] China's main two bourses reported diverging fortunes in the first half of the year, with larger, often state-owned, listed firms in Shanghai seeing profits tumble while smaller start-ups on the Shenzhen Exchange saw profits rise.

A total of 1,124 Shanghai-listed firms saw net profits shrink 5.7 per cent to around 1.14 trillion yuan (S$233 billion), official news agency Xinhua reported, citing a stock exchange statement. Revenues edged up 1.3 per cent to 11 trillion yuan.

Shenzhen's mostly small-and-medium-sized enterprises (SMEs), however, saw profits jump 5.8 per cent to a combined 244 billion yuan on revenues of around 3.5 trillion yuan, up 8.6 per cent, the bourse said in a separate statement.

The relative strength of Shenzhen reflects how traditional state-owned behemoths are struggling amid a wider slowdown, while smaller, nimbler private companies are increasingly taking in the reins of growth.

sentifi.com

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The Shenzhen bourse said the robust performance of its listed firms showed how "industrial upgrading and technological innovation were becoming the main drivers of earnings growth", amid a complex economic environment at home and abroad.

REUTERS

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