Chinese Economics Thread

[Wrought]

Corporate profits were on the rise in H12025, reversing the downward trend from last year.

Chinese corporate earnings have started to pick up, helped by growing exports to Southeast Asia and government efforts to spur consumer spending. Net profits at mainland-listed companies rose 1% on the year in the January-June half, reaching 1.6 trillion yuan ($224 billion) for the first increase for this period in three years. It marked a turnaround from a full-year profit decline of more than 10% in 2024.

Real estate was a notable—if unsurprising—exception.

But many other sectors struggled in the first half -- notably real estate, where 46 of 100 listed companies posted net losses. Leading homebuilder China Vanke's loss topped 10 billion yuan, while peer China Evergrande Group was delisted from the Stock Exchange of Hong Kong in late August.

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[supercat]

As though we need more evidence that China's GDP has been underestimated grossly.

https://twitter.com/i/web/status/1965108412590510180

https://twitter.com/i/web/status/1797131985522925785

 

[GulfLander]

https://twitter.com/i/web/status/1965953517648015662

 

[Wrought]

Financial flows exceeded trade flows for the first time this year.

Now, after years of tentative opening, a tipping point has been reached that may have have global implications every bit as significant as China’s manufacturing revolution. For the first time, the amount of money pouring

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and

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of China in search of investment opportunities is exceeding the value of goods and services its

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generate.

A world-beating stock market rally has led the recent surge in two-way financial flows, which surged to an unprecedented $4.5 trillion in the first seven months of the year. But it’s not just about equities — heavy trading of Chinese banks’

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and foreigners’ buying of the country’s

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have also contributed to the increase in cross-border money movements.

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