The financial performances of China's listed companies for 2018 and the first quarter (Q1) of this year shed light on the resilience of the world's largest developing economy.
Almost all of the 3,000-plus listed companies have disclosed their financial reports of 2018 and Q1 2019, posting solid growth in revenue.
Companies listed on the Shanghai Stock Exchange saw 11-percent growth in revenue last year while those on the Shenzhen Stock Exchange saw a 13.33-percent increase with a compound annual growth rate of 18.85 percent in past three years.
In 2018, companies in upstream industries such as steel, mining and chemical posted stellar progress. Companies listed on the Shenzhen Stock Exchange grew 35.09, 15.51 and 17.51 percent respectively.
High-tech firms in emerging industries stood out with the fastest pace of growth due to increased R&D input. Shanghai-listed companies spent 390 billion yuan, going up 21 percent, while Shenzhen-listed firms saw a 22.3 percent increase to reach 344.4 billion yuan.
Traditional sectors upgraded equipment and technology faster. Sany Heavy Industry Co., Ltd saw a 45.61 percent rise in revenue thanks to its heavy R&D spending on artificial intelligence and environmentally-friendly products.
Listed firms continued to report revenue increases in Q1 by raking in a total operating income of 11.34 trillion yuan (about 1.68 trillion U.S. dollars), 11.8 percent up year on year.
The net profit earning of 1.1 trillion yuan went up 10.3 percent from the same period last year, according to domestic financial information provider Wind.
In the first three months of this year, Shenzhen-listed firms reversed the downward trend seen in Q3 and Q4 last year. The cash flow of financing optimized with the amount of Q1 2019 is equal to 70 percent of that in 2018.
Revenues of real estate, construction material, catering and tourism companies continued to increase. High-tech companies such as those in the communications and IT sectors led the rise. The telecom industry turned from losses to profits in Q1 thanks to the development of 5G technology.
Performances of listed private enterprises also improved as the fall of their profits decelerated in Q1 thanks to a series of policies benefiting private and small- and medium-sized enterprises released since the second half of last year.
Proactive fiscal policy and prudent monetary policy will provide more support to listed firms by optimizing the environment of economic development, the Shenzhen Stock Exchange said in a statement.