BOFIT Viikkokatsaus / BOFIT Weekly Review 2016/30
Predicting profit of listed Chinese firms has proven a non-trivial task. A recent Bloomberg assessment found that per-share earnings of Chinese listed companies have been running about a third less that market analysts had forecast. Many of China’s largest listed firms are involved in heavy industry. While China seeks to transform its economy to a more consumer-oriented, service-driven economy, firms in industrial branches suffering from overcapacity have seen their profitability weaken much more than analysts expected.
Main stock index performance in China and Hong Kong
Sources: Macrobond and BOFIT.