WHILE Chinese President Xi Jinping's vision of an economy dominated by high-tech and consumer-oriented companies may be years away, they're already standing out from their old-growth counterparts when it comes to earnings.
About two-thirds of the 54 companies in Bloomberg's index of US-traded Chinese equities that have reported quarterly earnings since July exceeded analysts' projections. Approximately three-quarters of the gauge's members are technology and consumer-discretionary stocks. At the same time, more than half of 73 members of the MSCI China Index, which is heavily weighted with industrial and financial shares, missed earnings estimates.
That divergence comes as China's gross...