Chip-heavy Star Market and ChiNext firms post strong profit growth in China
Quick Look
Profit for firms on Shanghai's Star Market and Shenzhen's ChiNext board surged more than fourfold and 33% respectively in the six months to June, outpacing the 19.5% rise for all mainland China-listed companies, according to the China Association for Public Companies.
AI-generated summary
Why It Matters
The interim earnings season for mainland China-listed companies concluded on Tuesday, with Star Market and ChiNext showing exceptional profit growth compared to the broader market.
Profit for firms on the chip-heavy Star Market under the Shanghai Stock Exchange surged more than fourfold from a year earlier in the six months to June, while those on the similarly structured ChiNext board in Shenzhen rose 33 per cent, according to a report by the China Association for Public Companies.
That outpaced the 19.5 per cent increase for all 5,557 mainland China-listed companies, marking the fastest growth since 2022. The interim earnings season wrapped up on Tuesday.
“Technology and high-end manufacturing are becoming the new engines of economic growth in China,” said Zhang Qiyao, analyst at Industrial Securities.
What to Watch
AI outlook — possibilities, not facts
Continued profit growth for Star Market and ChiNext firms in the second half of the year
Possible · Within months
Open Questions
- Which specific companies drove the profit growth on Star Market and ChiNext?
- How sustainable is this profit growth trend beyond the six-month period?
- What role did government policy play in boosting tech and high-end manufacturing profits?
