China A-Share Earnings Recovery Hinges on Financial Sector

Earnings for Chinese mainland-listed companies rebounded modestly in 2025 entirely on the back of the financial sector, while non-financial firms recorded their third consecutive year of profit declines.

The stark divergence underscores the persistent pressures weighing on China’s broader economy, but a sharper, more broad-based earnings recovery in the first quarter of 2026 suggests corporate fundamentals may finally be finding a floor.