Worsening China Earnings Give Bears More Reasons to Sell
- MSCI China members’ EPS fell for fourth straight quarter: BI
- Downward earnings revision may continue into first quarter: MS
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China’s weakening earnings are dashing hopes for a stock market rebound, with some investors bracing for more pain as the economic slump looks set to continue.
Profit delivery for the third quarter worsened. Some 30% of the MSCI China Index members reported earnings that fell short of consensus forecasts compared to 18% in the second quarter, according to Morgan Stanley. Bloomberg Intelligence data also showed that aggregate earnings per share for these companies fell 6% from a year earlier, marking a fourth straight quarter of declines.