China Q1 2026 Corporate Performance Divergence

The Q1 2026 Stanford Graduate School of Business Investor Sentiment Survey highlights a striking divergence in corporate performance among China>>>'s listed companies. Private enterprises experienced a sharp rebound in trailing twelve-month (TTM) net profit growth to 22.5% YoY, while state-owned enterprises saw a continued decline of 14.5%. This bifurcation extends to industry classifications, with strategic emerging companies posting 21.0% TTM net profit growth and traditional companies declining by 6.1%. Despite this uneven earnings landscape, investor sentiment towards equity markets, including A share>>> and Hang Seng Index>>> equities, remained broadly resilient, with expectations for a rise. However, the report emphasizes that the broader market rally is primarily driven by valuation expansion (price-to-earnings ratios rose by 31.2%) rather than earnings recovery (aggregate TTM net profit growth of 1.0%). Sentiment toward real estate also improved following policy measures, though investment willingness remains subdued. Yu Jing, Professor of Accounting and Finance at Stanford Graduate School of Business, authored the survey.