China's small-cap listed firms expect bigger profits

Despite the economic slowdown, China's small-cap listed companies have shown resilience with about half of them expecting net profit increases in H1.

Of the 1,248 small-cap firms listed on the Shanghai and Shenzhen exchanges, 515 forecast year-on-year net profit upticks, the Xinhua-run China Securities Journal reported Thursday.

Of those companies, 183 predicted an increase of more than 50 percent, with agriculture, computers and defense sectors strongest. Figures from Choice, a financial data provider, show 112 companies expecting their profits to double. More than 200 companies expect to make losses.

China's economy is growing at the lowest rate for 24 years, but new business models and startups are adding fresh steam to growth.

China's stock market was among the world's best performers earlier this year but has slipped back since mid-June. Small-cap firms, notably those related to the Internet, on the whole outshone most blue-chip shares.

Listed companies will publish half-year revenues and profits in coming week. It is a common practice for them to publish forecasts for investors. Endi