Refinitiv data shows that Chinese companies can expect their highest revenue growth in five years. The economy’s reopening following the end of the government’s strict Covid policies has led to hopes of higher profits.
China’s large and mid-cap companies’ profits are expected to rise by 16.2% in 2023, the fastest growth rate since 2017. This is based on an assessment of 1,164 companies with a market capitalization of at least $1 billion.
According to Reuters’ assessment of the situation, the tech sector is expected to lead the charge with 27%, while the property sector is expected to grow by 9.4%.
Organizations that are expecting significant profit growth in 2023 include eCommerce giants JD.com and Alibaba Group, with growth rates of 28.8% and 18.3% respectively. Tech giant Tencent Holdings is expected to attain a 19% growth in profit.
“We expect China to outperform Asia ex-Japan due to its faster-than-anticipated reopening, continuing domestic policy support, and potential for stronger earnings growth,” Mark Haefele, chief investment officer at UBS Global Wealth Management confirmed.