Beijing – November 05, 2026 -- Net profit at Shanghai- and Shenzhen-listed companies reached RMB 5.1 trillion in the first three quarters of 2026, up 8.5% year on year, the fastest growth since 2022. Yan Xiang, chief economist at Founder Securities, says the figure supports a favorable long-term outlook for China's A-share market despite recent volatility.
Technology boards account for nearly 80% of new listings since 2024
The STAR Market, ChiNext and Beijing Stock Exchange have drawn more technology companies to the A-share market since capital market reforms began. Together they account for nearly 80% of new listings since 2024. The TMT (technology, media and telecommunications) sector now makes up more than one-quarter of total A-share market capitalization, well above the combined weight of banks, non-bank financials and real estate. Electronics has overtaken banking as the largest sector by market cap.
Yan expects the market to become increasingly tech-focused as Chinese companies build alternatives to imported technologies.
Revenue climbs 5.8% to RMB 56.6 trillion as 73% of listed firms report profits
As of October 31, 2026, most Shanghai- and Shenzhen-listed companies had reported third-quarter results, and 73% posted profits. Combined revenue for the first three quarters rose 5.8% to RMB 56.6 trillion. Both the absolute totals and the growth rates are the highest since 2022.
STAR Market companies' net profit surged 474.6%, while ChiNext companies grew net profit 22.7%. Listed companies in artificial intelligence, robotics and innovative pharmaceuticals recorded rapid earnings growth. Yan expects earnings to keep rising as nominal GDP growth continues to recover.
CSI 300 trades at 1.3x book value, in the 19th percentile since 2010
Valuations on major broad-market indices have returned to reasonable levels in absolute and historical terms, and some have fallen to historical lows. As of October 30, the CSI 300 traded at a price-to-book ratio of 1.3x. The Wind All-A index stood at 1.6x, in the 24th percentile of its range over the same period. Growth-sector valuations have fallen to historical lows after the earlier selloff.
Dividends and buybacks reach RMB 2.1 trillion, 2.7 times IPO and refinancing proceeds
China Securities Regulatory Commission (CSRC) chairman Wu Qing said at the Annual Conference of Financial Street Forum 2026 that listed companies had paid dividends and repurchased shares totaling RMB 2.1 trillion so far this year. That is 2.7 times the funds raised through IPOs and refinancing over the same period. Several industry leaders are also implementing or planning substantial buybacks. Yan says higher investor returns will help strengthen market stability.
CSRC sets four reform priorities, including wider access for international investors
At the same forum, Wu outlined four priorities for balancing the capital market's investment and financing roles: safeguarding market stability, making capital markets more inclusive, promoting a well-regulated and well-functioning market, and gradually expanding access for international participants. Yan expects these reforms to make Chinese equities more attractive, strengthen market confidence and improve the mix of capital flowing into the market.