China’s Stock Market Pressured by Slower Earnings Growth

China’s stock market continues to face downward pressure as weak earnings growth forecasts weigh on investor sentiment. Brokerage firms highlight that industries such as consumer goods, real estate, and green energy are experiencing challenges due to weak demand and overcapacity.

According to Shenwan Hongyuan Group, profit growth for mainland Chinese listed companies slowed during the first nine months compared to the first half of the year.

The National Bureau of Statistics reported that industrial profits in China rose 15.7 per cent year-on-year in the first eight months, a deceleration from the 18.7 per cent increase recorded in the first half. This data supports the brokerage’s forecast on earnings trends.