China’s Earnings Setback Sows Fresh Doubts About Stock Rebound
- Major tech firms’ EPS growth was the slowest since late 2022
- Morgan Stanley sees more downward earnings revisions coming
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China’s stock market is facing darker prospects after a weak earnings season dashed hopes for any imminent recovery in flagging consumption that has weighed on the world’s No. 2 economy.
Earnings per share for the MSCI China Index fell 4.5% from the year earlier in the second quarter, its worst in five quarters, according to data from Bloomberg Intelligence. Underscoring the contraction was weakening support from the country’s eight biggest tech firms, whose overall EPS growth at 19% was the slowest since the last quarter of 2022.