Shares edge up as companies post earnings growth in Q3
Shanghai stocks closed slightly higher today after third-quarter financial reports showed companies posted solid earnings growth.
The Shanghai Composite Index edged up 0.22 percent to close at 3,388.25 points.
"About 100 Shanghai-listed companies have disclosed third-quarter earnings, with combined net profit jumping 47 percent from a year earlier, according to the official Shanghai Securities News," Reuters said today.
Their third-quarter reports showed that total revenue of the 100 companies was over 450 billion yuan (US$67.9 billion) from January to September, up 20 percent year on year. Their net profit, meanwhile, was 50 billion yuan during the same period, up 47 percent annually.
"Shanghai-listed firms have a steady business performance in the first three quarters of this year, which is in line with the country's economic development," said Shanghai Securities News.
Analysts also said insurance companies are likely to report robust earnings growth in third-quarter financial reports.
"Insurers' operating figures are expected to be positive after the release of the third-quarter financial reports and we hold a optimistic attitude on the mid-term and long-term investment value of insurance shares," Dai Zhifeng, analyst at Zhongtai Securities, said, a point echoed by China Merchants Securities Co which remains bullish on the insurance sector in the fourth quarter.
Investors also cheered up after the People's Bank of China again boosted liquidity by injecting 250 billion yuan (US$37.7 billion) into the financial market through reverse repurchase agreements today, according to a statement on its official website.
Property developers, brokerages and insurance companies gained. Poly Real Estate Group Co Ltd added 2.96 percent to 10.80 yuan (US$1.63), Soochow Securities Co Ltd climbed 2.12 percent to 11.54 yuan and New China Life Insurance Co Ltd rose 1.91 percent to 59.80 yuan.