Listed companies see 2006 profits up
Updated: 2007-01-23 09:03
Analysts said the new listing of super large-cap companies such as the Industrial and Commercial Bank of China (ICBC), Bank of China, Air China and Daqin Railways have greatly contributed to the total market profit growth.
ICBC said earlier it had estimated a net profit rise of over 26 percent, while Bank of China projects an increase of 17 percent. Listed large-cap companies were estimated to generate a total of 120 billion net profit in 2006, according to China Securities News.
"The net profit of listed large-cap companies in the banking, steel and transportation sectors largely contributed to 2006 total market profit growth," said Zhang Yidong, an analyst at Industrial Securities, "and we still have lots of large-cap blue-chip companies that have yet to go public."
Large-cap companies such as China Mobile, Bank of Communications, PetroChina and Ping An Insurance, are expected to be listed on the stock exchange in 2007.
According to statistics on listed companies in the third quarter of 2006, the total net profit of the top 20 highest-earning companies accounted for 56 percent of profits reported.
For example, net profit of China Petroleum & Chemical Corp represents 16 percent of the total market net profit. Top 20 companies were mainly in the steel, banking, electric power and oil sectors.
Remaining listed companies will release their annual reports by May this year. Analysts said companies that announced big gain in profit would probably increase in share prices in the short term by strengthening investors' confidence in the stock. Fosun Pharmaceutical rose 8 percent to close at 7.48 yuan after announcing its estimated annual report that day.
For 2007, Zhang said he expects more steady growth in the stock market.
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