Nearly 24% of mainland-listed companies reported net losses in Q3 2024, more than double pre-pandemic levels. Profit margins hit their lowest since 2009, while industrial profits fell 3.3% for the third consecutive year, according to official data cited by WSJ.
Major firms are struggling. Xinte Energy expects a $500 million loss, Angang Steel projects $1 billion in losses, and Tianqi Lithium anticipates a $1 billion shortfall. Red Star Macalline, a Shanghai-based furniture retailer, forecasts a $400 million loss but expects a demand rebound if consumption policies improve.
Overcapacity has triggered price wars. In response, leading producers announced production cuts. Foreign investors pulled $4.4 billion from Chinese A-share funds in 2024, up from $2.6 billion in 2023.
