Net profits for 1,388 firms listed on China's Shanghai and Shenzhen stock exchanges grew by 7.54 percent year on year in the first half of the year, an analysis of their interim reports shows.

 

Sales at the 1,388 firms totaled 2.39 trillion yuan (US$298 billion) for the first six months, up 17.72 percent, the Xinhua-run Shanghai Securities News said Thursday.

 

The two bourses have a total of 1,392 listed firms. All except four had released their interim reports by Thursday.

 

The report attributed the improved performance to China's dynamic macro economy and new developments in the stock market.

 

One such development is the return of blue chips from overseas markets to domestic bourses.

 

Strong growth by the Bank of China, Sinopec and other blue chips boosted the overall performance of the listed firms.

 

According to the report, the top 20 firms made net profits of 71.87 billion yuan in the first half year, accounting for 56.3 percent of total net profits for all listed firms.

 

The massive restructuring of listed firms sparked by the reform seeking to transform non-tradable state-owned shares into fully tradable shares also helped brighten the figures.

 

The reform has improved the quality of listed firms' assets and enhanced their ability to make profits, the China Securities Journal said.

 

So far 1,144 listed firms have completed or are in the process of completing the reforms.

 

(Xinhua News Agency August 31, 2006)