China Inc on slippery earnings slope as pricey commodities, Covid-19 costs pressure operating margins, analysts say


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A slowdown in earnings growth for publicly traded Chinese companies is likely to extend through the rest of the year, as elevated commodity prices erode margins and stringent measures to contain Covid-19 outbreaks suppress consumer spending, analysts said. The 300 biggest companies on the Shanghai and Shenzhen exchanges will probably report a 17 per cent profit drop this quarter from a year earlier, the worst quarterly performance in at least two years, according to Bloomberg data. That would be a deterioration from a 1.2 per cent decrease for the previous three-month period and an 11 per cent slump in the...