Over 60% of public firms post better profits

BEIJING - More than 60 percent of Chinese public companies reported profit growth in the first quarter of 2018 partly due to a recovery in commodity prices amid the ongoing economic restructuring.

Some 3,500 firms listed on the Shanghai or Shenzhen exchanges posted combined net profits of nearly 850 billion yuan (around $130 billion) in the January-March period, according to financial information provider Wind.

More than 2,200 companies managed to increase their profits year on year, with 576 doubling their growth rates.

Construction material producers saw the most rapid profit increase of 182.58 percent, followed by iron and steel factories and defense companies. Businesses in non-ferrous metals and telecommunication also logged profit increases of more than 50 percent.

Analysts attributed the improved performance of steel, non-ferrous metal and other cyclical sectors to the country's supply-side structural reform, which, aimed at downsizing saturated industries and economic rebalancing, has prompted a rebound in commodity prices.

"While the reform contributed to faster profit growth in most of the cyclical companies, consumption-driven sectors, such as food and beverages, and emerging industries also saw considerable increases," said Yang Delong with First Seafront Fund.

Improving corporate profits were also helped by a solid economy in the first three months, which extended the resilience of last year with a 6.8-percent year-on-year growth pace.