Over 60 percent of public firms upbeat about 2018 performance

More than 60 percent of China's listed companies that have released their full-year performances estimate they will post profit growth in 2018.

A Chinese investor uses her smartphone as she monitors stock prices at a brokerage house in Beijing, Friday, July 6, 2018. [Photo: IC]

By Friday, some 1,200 companies traded on the Shanghai and Shenzhen stock exchanges had released their forecasts, according to the Securities Daily.

Of all profit-making companies, 264 companies forecast significant increases, while 280 predicted slight gains. Sixty-five companies showed confidence in reversing losses, while 161 expect to remain profitable after achieving turnarounds this time last year.

The paper said 168 companies predict their net profits to at least double, with most of them being small- and medium-sized enterprises listed on the NASDAQ-style ChiNext board.

Analysts said government support for entrepreneurship and innovation has provided a major boost for tech firms and startups and allowed them to survive and thrive amid downward pressures on the broader economy.

Chemical and machinery companies also expect satisfactory profit growth as China's continued emphasis on industrial restructuring and environmental protection has tackled overcapacity and prompted rising prices in industrial products.

The performance of listed companies is considered a leading indicator of China's economy, which expanded steadily at 6.7 percent year on year in the first three quarters, well above the 6.5-percent annual target.