Home 

Chinese ‘white horses’ issue surprise profit warnings before earnings season kicks off

Chinese stock traders are bracing themselves for bad news during the upcoming earnings season after two “white horses” caught investors off guard with their profit warnings.Dong-E-E-Jiao, a Chinese traditional pharmaceutical company, that had posted profit increases for 12 consecutive years, and Han’s Laser Technology Industry Group, once a favourite among foreign investors, said in exchange filings that first-half earnings may have dropped significantly.Both stocks plunged by the 10 per cent… Source link

Read More
Home 

Opinion | Slowdowns in advanced economies have pushed investors to put money back into emerging markets – and ignore warnings

While both central banks are hoping that the recent downshift in growth – which stems in part from the fallout from the trade war – will prove temporary, the dovish policy shifts in Europe and America prolong the “lower for longer” interest rate regime that appeared to be coming to an end as the pace of US monetary tightening quickened in 2017 and 2018. Some investors, notably Pimco, an asset manager, fear the euro zone faces the same low-growth, low-inflation environment Japan has endured following the bursting of its asset…

Read More
China 

You thought 2018 was bad for China’s stock market? Profit warnings suggest worse may be yet to come

Last year was a dreadful one for mainland Chinese equities as a slowdown in economic growth and the trade war with the US combined to crush market sentiment. The bad news for investors is that the worst may be yet to come. Preliminary announcements showed that 390 companies listed on China’s bourses are set to report a combined loss to the tune of 330 billion yuan (US$49 billion) for 2018. That means the total loss for the country’s listed firms is on track to be three times greater than a…

Read More
Home 

More Chinese companies scramble to issue profit warnings as debris field from M&A boom begins to surface

Hundreds of Chinese companies have revised their earnings outlook for 2018 before a deadline late Thursday, warning that results will fail to meet expectations as economic growth eases, forcing heavy write-downs. Of 2,488 companies that made preliminary announcements, more than 280 revised their estimates, while 59 warned earnings would be down by more than 66 per cent from their previous estimates. Among those warning of the sharp downward revision, 42 cited impairment of goodwill as a factor. Goodwill is an accounting term referring to an intangible asset class arising from…

Read More