Caution over euphoria of firms' share price moves
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Caution over euphoria of firms' share price moves

Shanghai Daily

Chinese mainland listed firms have posted a sparkling average of 70 percent growth in their first-half profits, fanning euphoria over their stock-price movements in the second half of this year.

But experts cautioned that as a large chunk of the half-year earnings at listed firms was mainly from equity investments, the euphoria may be short-lived when investors worry about valuations and then take profits.

Companies traded in Shanghai and Shenzhen chalked up a combined net profit of 323.2 billion yuan (US$42.8 billion) from January to June, a jump of 69.9 percent from a year ago, exchange data showed on Friday.

These firms generated a cumulative gross revenue of 3.54 trillion yuan in the six months ended June 30, accounting for a third of the country's first-half gross domestic product, according to the data.

Earnings per share hit 0.193 yuan on average in the first half, up 52.60 percent year on year while the average return on equity was 7.67 percent, a climb of 37.3 percent from a year earlier.

"The growth figures were as impressive as expected," said Liu Minglei, a Guoyuan Securities Co investment adviser.

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