Rising Sales, Falling Profits Expose Margin Strain Across China’s A-Share Market

Nearly one in five companies listed on China’s A-share market reported higher revenue but lower profits in the first half of 2026, underscoring broad margin pressure even as overall earnings for the market improved.

The split points to the toll of intense competition, volatile raw material prices and foreign exchange swings on corporate profitability across a wide range of industrial sectors. It also highlights a growing disconnect between share price gains in some high-tech segments and underlying business performance.