CKGSB Survey: Private Profits +22.5% YoY

Private listed firms' TTM net profit surged 22.5% YoY in Q1 2026, while state‑owned firms fell 14.5% YoY.
Strategic emerging companies posted 21.0% profit growth versus a 6.1% decline for traditional firms, indicating uneven sector recovery.
A‑share market delivered only 1.0% profit growth but P/E ratios jumped 31.2%, yielding roughly 32.5% total equity returns.
63.8% of investors expect A‑shares to rise (up 1.4 pp) and 62.1% favor Hong Kong equities, despite valuation‑driven rally.