China A-share profits reach new highs
China A-share profits rose 2.5% in the first half of 2025, totaling 3 trillion yuan (US$420 billion). Data from the China Association for Public Companies showed that of 5,432 listed firms, nearly 60% recorded revenue growth, and 75% reported profits. The results point to resilience amid weak property markets, tariffs, and slowing domestic demand.
Sectoral performance in the first half of 2025
Non-financial companies posted revenues of 30.42 trillion yuan, nearly flat year-on-year, but managed net profits of 1.59 trillion yuan, up 0.9%. Manufacturing led the way, with revenues rising 4.7% and profits 7.8%.
The consumer sector benefited from subsidies and trade-in programs. Electric vehicle firms delivered over 30% profit growth, while home appliance companies rose 9%. Gaming and cinema operators surged with profits climbing more than 70%.
Export-driven industries also stood out. Export revenues rose 4.5% to 4.9 trillion yuan. Shipbuilding excelled, with overseas deliveries jumping 38.6% and profits soaring 135%.
Tech-driven boards outperform broader market
Companies listed on the ChiNext, Star Market, and Beijing Stock Exchange outpaced the wider A-share market. Revenues grew 9%, 4.9%, and 6.1% respectively, supported by smaller, innovation-focused firms. Strategic emerging industries and hi-tech manufacturing accounted for 90% of new listings in the first half, underscoring Beijing’s focus on innovation.
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Dividend payouts and shareholder returns
By the end of August, 818 listed companies had declared dividend payouts, an increase of 141 over last year. State-owned enterprises contributed 71% of total dividends, with 13 SOEs distributing more than 10 billion yuan each. Share buyback plans reached 164.27 billion yuan, reflecting stronger shareholder-focused policies.
Market reforms and policy backdrop
Beijing’s April 2024 guidelines encouraged higher dividend payouts, restricted major shareholder sales, and strengthened oversight of IPOs. These reforms align with efforts to stabilize capital markets and restore investor confidence during a period of economic strain.
Outlook for China A-share profits
The growth in China A-share profits shows resilience, but overall momentum remains modest. Tariffs, property sector weakness, and sluggish household demand continue to pressure margins. However, emerging industries like EVs, AI, and shipbuilding highlight China’s push toward innovation-led growth.
With more than 67 new listings in the first half of 2025 — dominated by electronics and machinery firms — and government-backed reforms, China’s listed companies are poised to maintain moderate gains. Yet long-term sustainability depends on deepening financial reforms, curbing real estate risks, and strengthening consumption.
