Chinese companies’ second-quarter performance renders a stark reality: earnings proof to justify a blistering stock rally is missing.
Profits at mainland-listed companies rose just 1.6% year-on-year in the three months ended June, slowing from a 3.5% gain in the previous quarter, according to China International Capital Corp. Financial firms — benefiting from fees income and other rally-related gains — led the modest advance, while non-financial sectors posted combined losses.