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.
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