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Mainland firms see 400b yuan bonanza

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Combined earnings of listed companies soar in wake of jumbo IPOs

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The total profits of companies listed in Shanghai and Shenzhen probably jumped almost two-thirds last year, driven by the listings of large corporates and the country's fast-growing economy.

About half those firms, or 733, reported a combined net profit of 253.7 billion yuan for last year, equal to the aggregate earnings of 95.5 per cent of all the listed firms for 2005, the Shanghai Securities News said, citing Wind Info, a provider of Chinese financial data.

Last year's profits of all listed companies would probably exceed 400 billion yuan, at least 62 per cent higher than the 246.8 billion yuan for the previous year.

This was because some newly listed major firms such as China Life Insurance and Ping An Insurance (Group) had not yet released their results for the year, the newspaper said.

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The surge was partly due to the jumbo initial public offerings last year, such as those of Industrial and Commercial Bank of China, Bank of China, China Life and Ping An.

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