Chinese listed companies have delivered strong stock returns over the past year even as net profits grew by only about 1 per cent, suggesting the gains were driven more by higher valuations than corporate earnings, according to a quarterly investor survey released by the Cheung Kong Graduate School of Business (CKGSB).Net profit growth turned positive at about 1 per cent on a trailing 12-month basis to the first quarter of 2026, while price-to-earnings ratios rose 31.2 per cent, the survey showed. Total equity-market returns reached 32.5 per cent over the same period.Liu Jing, a professor of accounting and finance at CKGSB, said market turnover had recovered sharply, pointing to more active trading and stronger investor optimism despite only modest earnings growth.“If we want a long-term bull market, fundamentals ultimately have to start growing,” Liu said at a briefing on Wednesday.Investor sentiment towards equities remained broadly positive. About 63.8 per cent of respondents expected A-shares to rise over the coming year, up 1.4 percentage points from the previous survey period, while 62.1 per cent expected Hong Kong equities to gain, up 1 percentage point.The survey covered 2,100 financial professionals and retail investors nationwide.The property market is showing signs of recovery, but a broad-based rise in housing prices may still take another 12 months
China’s corporate earnings lag behind stock market gains, survey finds
Equities post strong gains driven by improved market sentiment and tech optimism, though profit growth lags, a new survey shows.








