Chinese corporates are likely to deliver their best earnings growth in years this results season. Yet, stock traders fixated on US-China tensions say the recovery in profits would mean little to the market should progress in trade negotiations falter.
Profits at firms listed onshore are seen expanding 5.8% year-on-year in the three months through September, according to China International Capital Corp., one of the country’s biggest brokerages. That’s the biggest jump since the second quarter of 2021, and compares with 1.6% on-year growth in the immediately preceding quarter.