Domestic Listed Firms See 50% Rise in Profit
Powered by the booming economy and high stock investment returns, the net profit of publicly traded Chinese firms soared 49.7% on average in 2007.
According to the Shanghai Securities News, net profit of the 1,574 companies listed on the Shanghai and Shenzhen exchanges totaled 949.7 billion yuan ($136 billion) last year. Their revenue climbed 25% to 9.45 trillion yuan, taking up 38.3% of the country’s gross domestic product (GDP) and earnings per share grew 39.7% to a record high of 0.42 yuan.
China’s GDP witnessed the fifth straight year of double digit growth of 11.9% last year. In the mean time, the benchmark Shanghai Composite Index nearly doubled.
In spite of such negative factors as slower export growth, tightening monetary policies and the worst winter in more than five decades, Li Feng, a Galaxy Securities analyst, foresees a no lower than 30% growth in the first quarter corporate profits of listed firms.
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