Nearly 80 percent of the listed companies in China reaped profits in the third quarter of this year, with more resources put into research and development, data from the country's three stock exchanges showed.
As of Thursday, a total of 5,368 companies listed at the Shanghai Stock Exchange, the Shenzhen Stock Exchange, and the Beijing Stock Exchange had disclosed their third-quarter reports for 2024.
In the first three quarters of this year, listed companies in China recorded a total turnover of 52.64 trillion yuan (about 7.39 trillion U.S. dollars) and a net profit of 4.43 trillion yuan (about 620 billion U.S. dollars). Among these firms, 4,127 companies logged profits, accounting for nearly 80 percent of the total.
In the same period, 17 out of 19 industry sectors posted profits, with emerging industries showing particularly strong growth trajectories.
Sectors like automotive components and semiconductors saw a significant upturn, with net profits rising 20.5 percent and 41.9 percent, respectively, from the previous year.
The electronic industry witnessed a net profit surge of over 35 percent in the period, while high-tech manufacturing companies recorded a turnover and a net profit growth of 6.1 percent and 3.2 percent, respectively, notably surpassing the average level.
The listed companies also ramped up their investment in research and development in the first three quarters of this year, marking a 3.9-percent year-on-year increase to reach 1.1 trillion yuan (about 150 billion U.S. dollars).
Companies listed on the Growth Enterprise Market, the Science and Technology Innovation Board, and the Beijing Stock Exchange channeled more resources to research and development, with the investment intensity of 4.74 percent, 9.94 percent, and 4.73 percent, respectively.
The number of listed companies with more than one-billion-yuan (about 140 million U.S. dollars) research and development input totaled 163 companies; 363 listed companies observed a year-on-year increase of over 50 percent in research and development, and 338 listed companies reported research and development investment intensity above 20 percent.
Merger and acquisition activities have notably surged in the first three quarters, driven by measures aiming to future reform the Science and Technology Innovation Board and facilitate merger and acquisition.
In addition, listed companies increased the frequency to share bonus with investors.
"The total cash dividends amounted to 612.6 billion yuan, up 170 percent or 400 billion yuan more compared to the same period of last year, sending a positive signal to the market. This move is conducive to bolstering investor confidence and keeping expectations stable," said Sun Nianrui, vice chairman of the China Association for Public Companies.
Listed companies in China reap profits, with research and development input up in third quarter
