Recent data released by the China Association for Public Companies shows that the nation's listed companies delivered solid performance in the first half of the year. All listed firms on the domestic A-share market reported combined net profits of 3.58 trillion yuan, a year-on-year increase of 19.5%. This robust growth was supported by a stable macroeconomic environment, with GDP expanding 4.7% during the period while foreign trade maintained strong momentum and new growth drivers continued to develop rapidly.

As of August 31, a total of 5,557 companies listed on the Shanghai, Shenzhen, and Beijing stock exchanges had published their interim reports for 2026. The reports indicate that the overall quality and efficiency of listed companies' operations are steadily improving, the transition to new economic drivers is accelerating, and technological innovation continues to energize the market. Additionally, traditional cyclical industries are showing signs of recovery, and shareholder return mechanisms are becoming increasingly well-established, marking notable progress in high-quality development.

Broad-based gains in revenue and profits

During the first six months, these companies generated combined operating revenue of 37.76 trillion yuan, up 7.6% year on year. Net profits reached 3.58 trillion yuan, reflecting a growth rate that was 16.7 percentage points higher than the pace recorded for all of the previous year. The second quarter proved particularly strong, with revenue reaching 19.92 trillion yuan and net profits hitting 1.95 trillion yuan, both growing considerably faster than in the first quarter.

Delving deeper into the numbers, three-quarters of all listed companies were profitable, six in ten reported revenue increases, and four in ten saw net profit growth. Meanwhile, 2,015 companies achieved simultaneous gains in both revenue and net profit. The median revenue growth rate across the market stood at 5.7%, with the median net profit growth at 0.9%.

Newly listed companies since 2024 have outperformed the broader market, achieving a median revenue growth rate of 11.4%. Companies on the ChiNext board posted particularly strong momentum, with revenue climbing 22.3% and net profits surging 32.7%. The STAR Market delivered even more impressive results, with revenue expanding nearly 40% and net profits leaping by 4.4 times. On the Beijing Stock Exchange, revenue surpassed the 138 billion yuan threshold for the first time, and 28 companies more than doubled their net profits.

State-controlled enterprises improved their profitability, while private companies demonstrated vigorous growth momentum, with net profit increases of 12.4% and 29.6% respectively. These figures represent improvements of 12.9 and 20.9 percentage points compared with the previous full year. Across 19 industry sectors, 16 were profitable, 12 posted revenue growth, and 10 achieved gains in both metrics. All manufacturing sub-sectors were profitable, with 8 recording higher revenue and 5 seeing net profit growth.

Excluding the financial industry, real-economy companies generated revenue of 32.51 trillion yuan, up 6.6%, with net profits of 1.95 trillion yuan, an increase of 22%. The CSI 300 constituents remained a cornerstone of the market, contributing 22.30 trillion yuan in revenue (59% of the total) and 2.78 trillion yuan in net profits (78% of the total).

Industrial strength and consumption resilience take center stage

Industrial enterprises above a designated size saw total profits expand 18.7% in the first half, while listed industrial companies recorded net profits of 1.61 trillion yuan, a gain of 31.2%. Commodity prices for non-ferrous metals and coal stayed elevated due to tight upstream supply and robust demand growth, driving net profit increases of 106.7% and 28.2% respectively for these two sectors.

Hard-technology companies proved to be key growth engines. The integrated circuit industry saw net profits jump 2.4 times, supported by efforts to build an independent AI ecosystem. Domestic innovative drugs entered a commercialization window, helping the biomedicine sector achieve 9.9% net profit growth. Breakthroughs in advanced machine tools and aerospace propelled high-end equipment manufacturing to revenue and net profit gains of 13.1% and 16.7% respectively.

Consumption trends remained healthy. New energy vehicles approached a 50% penetration rate across all vehicle categories, with listed companies in the sector reporting 15.9% revenue growth. Home appliance and smart wearable industries saw net profits expand by more than 50%. Domestic travel surpassed 3.46 billion trips, with strong demand for county-level and exhibition tourism. The transportation industry grew revenue by 6.5%, while tourism, hotels, and catering achieved net profit growth exceeding 10%. Total logistics volume rose 5.1%, and four listed express delivery companies posted combined revenue growth of 8.9%. Youth-led community consumption trends boosted cultural and emotional spending, with the pet industry's revenue up 11.3% and gaming and cosmetics sectors seeing net profit gains of 65.7% and 24.7% respectively.

Foreign trade remained a bright spot, with goods exports growing 13.4% year on year for an eleventh consecutive quarter of positive growth. A total of 3,196 listed companies disclosed overseas revenue, generating 6.06 trillion yuan in combined international sales, an increase of 22.9%. Of these, 553 companies derived more than half their revenue from overseas markets.

The export mix continued to improve. Exports of electronic components rose 62.6%, helping electronics companies achieve overseas revenue growth above 40%. In the new energy arena, lithium battery and wind turbine exports grew by over 30%, while energy storage companies saw overseas revenue climb 27.1%. Shipbuilding and marine engineering equipment exports increased 19.9%, sustaining the prior year's rapid growth for maritime equipment makers.

Innovation and green transition gather pace

Listed companies continued to build new productive forces, with total R&D investment reaching 847.3 billion yuan in the first half, up 3% year on year. Overall R&D intensity held steady at 2.24%. The three major growth boards led the way, with the STAR Market maintaining R&D intensity above 10% for several consecutive years, while ChiNext and the Beijing Stock Exchange both topped 4%.

The new-generation information technology and biotechnology sectors acted as innovation leaders, each investing over 60 billion yuan in R&D. Their R&D intensity exceeded the market average by 4.3 and 4.5 percentage points respectively. Notably, 127 companies invested more than 1 billion yuan in R&D, and 923 companies achieved R&D intensity above 10%, indicating significantly improved commercialization of innovation.

On the green front, a three-year campaign to transform energy conservation and carbon reduction got underway, targeting nine high-energy-consuming industries such as steel and cement. Policy support and funding increased, helping energy conservation and environmental protection companies achieve double-digit growth in both revenue and net profits. As the circular economy deepened, power batteries entered a large-scale retirement phase, driving revenue growth of 26.3% and a 1.6-fold net profit increase in the waste resource utilization sector.

Market mechanisms smooth the path for better shareholder returns

As of August 31, a total of 5,558 companies were listed across the three exchanges, with strategic emerging industries and high-tech manufacturing accounting for 60% of the total. During 2026, 102 companies made their market debuts, with 82% listing on ChiNext, the STAR Market, or the Beijing Stock Exchange, primarily in the electronics and machinery equipment sectors. Meanwhile, 21 companies were delisted, two-thirds of them from the Shanghai or Shenzhen main boards. Among these, four were forced to delist due to major violations, thirteen for financial reasons, and one voluntarily withdrew.

Fundraising on the Hong Kong Stock Exchange has already surpassed last year's full-year total, with 33 new A+H companies and nearly 100 mainland enterprises listing in Hong Kong. A wave of hard-tech companies in areas such as artificial intelligence and biomedicine has strengthened Hong Kong's position as a global asset allocation hub.

Shareholder return mechanisms are becoming more routine and sustainable. A total of 872 companies announced cash dividend plans for the first quarter or the first half of 2026, an increase of 54 from the previous year. Strategic emerging industry companies made up half of these. Total cash dividends reached 740.3 billion yuan, with an overall dividend payout ratio of 28.7%. Notably, 57 companies paid dividends for the first time since listing, and 5 companies distributed dividends multiple times during the year.

State-controlled enterprises played a stabilizing role, contributing 80% of total dividend amounts. Of these, 15 companies distributed over 10 billion yuan each, and 56 companies paid out more than 1 billion yuan. Many listed companies have also rolled out share buyback and increase plans to bolster investor confidence. Excluding cancelled programs, 1,051 companies announced buyback plans for 2026 with a combined value exceeding 220 billion yuan. Self-funded buybacks accounted for 39% of the total, and the overall completion rate stood at 34%. Market-capitalization-management buybacks grew noticeably, with plans exceeding 100 billion yuan, complementing incentive-based buybacks to enhance long-term capital market returns. Additionally, 273 companies disclosed plans to increase shareholdings, with state capital platforms China Reform Holdings and China Chengtong collectively adding more than 60 billion yuan in holdings.