Earnings surprises may come from technology, high-end manufacturing and commodities that benefited from price increases, according to brokerages, including China Merchants Securities and Guotai Junan Securities.
The earnings season for Chinese listed companies kicks off this month, with all firms required by the exchanges to disclose third-quarter reports by the end of October. Investors are scouring for companies that will deliver solid earnings to hedge against the increased market volatility triggered by the US’ tariff threat and China’s tightening of rare earth exports. The CSI 300 dropped more than 4 per cent from a high set on October 9 through Friday.
“During the earnings season, corporate results typically have a pronounced impact on stock prices,” said Fang Yi, an analyst at Guotai Junan in Shanghai. “We are now in the window of third-quarter earnings, and it would be a wise strategy to identify those niche industries with earnings advantages amid the wilder swings in the market.”