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Wang Yang, an analyst with Soochow Securities based in Suzhou, Jia
ngsu province, said that apart from the economic recovery underpinned by su
pportive policies, cyclical factors also imply that earnings growth will continue to recover in the rest of the year.
According to Wang, the current profit cycle of A-share companies started from 2
016 and should end with recovery this year, as the cycles usually last for 12 to 14 quarters.
This year’s gradual recovery in earnings growth could help the A-share market to withstan
d external uncertainties, said Yan Xiang, an analyst with Shenzhen-based Guosen Securities.
“It is quite different from 2018 when earnings growth of most companies deteriorated. Earn
ings growth, a determinant of the market trend, is likely to be on the recovery path,” Yan said in a note.
China’s birthrate has been on a decline over the past few years, and now the number of people tying the proverbial knot is also heading lower.
Last year, the marriage rate nationwide dipped to 7.2 newly wedded couples per 1,000 people, dropp
ing for the fifth consecutive year, according to the National Bureau of Statistics and the Ministry of Civil Affairs.
The rate stood at 9.9 per 1,000 in 2013, and was 7.7 in 2017.
The declining figures come as the China is grappling with fewer newborns and a mounting number of divorces.
The birthrate was 10.94 per 1,000 on the Chinese mainland last year, down from 12.43 in 2017, the bureau said.
Meanwhile, couples deciding to end their marriages were rising rapidly, reaching 3.2 divorces
per 1,000 people in 2017, said the Social Service Development Statistical Bulletin of 2017. The number was only 2.0 in 2010.