Chinese companies listed on the Shanghai Stock Exchange, most of which are state-owned enterprises (SOEs), showed positive structural changes despite shrinking profits in the first half of this year.
A total of 1,124 Shanghai-listed enterprises earned about 11 trillion yuan (1.64 trillion U.S.dollars) in H1, slightly up 1.3 percent year on year, while their net profits shrank by about 5.7 percent to about 1.14 trillion yuan, according to the statement released by the stock exchange on Wednesday evening.
In breakdown, listed firms in the agricultural sector saw strong revenue and profit growth while the tertiary sector's total revenue accounted for about 42 percent of the total, indicating some optimization of China's economic structure.
The country's efforts to reduce excess capacity paid off as listed companies in overcapacity sectors such as steel and coal saw the value of their stockpiles dropping by 17 percent and net profit rising by about 250 percent. The number of loss-suffering companies also fell from 24 last H1 to 13, the statement showed.
Emerging sectors such as telecommunications and consumption-intensive industries like tourism posted strong financial performance.
Meanwhile, companies in different regions fared differently as coastal areas such as Shandong and Zhejiang provinces saw their listed companies rise fast in profits while counterparts in resource-intensive central regions like Shanxi Province saw shrinking profits.
A total of 177 listed companies suffered losses in H1, dropping by 11 companies year on year, the statement showed.
