Chinese stocks close flat as CATL falls on earnings miss
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Chinese equities closed mixed and muted on Monday, as strong industrial production and retail sales growth were offset by rising unemployment and disappointing corporate earnings. The Shanghai Composite Index gained 0.2%, closing at 3,426.13, while the Shenzhen Component Index slipped 0.2% to 10,957.82.
Industrial production for January and February expanded 5.9% year-on-year, exceeding the 5.3% forecast by analysts. Retail sales grew 4% to 8.373 trillion yuan, meeting expectations. However, China’s unemployment rate increased to 5.4% in February from 5.2% the previous month, averaging 5.3% over the first two months of 2025, raising concerns about labor market weakness.
On the corporate front, Contemporary Amperex Technology ($300750), the world’s largest EV battery maker, posted a 15% increase in 2024 net profit to 50.7 billion yuan, with earnings per share rising to 11.58 yuan. However, the results missed analyst estimates of 11.76 yuan, while revenue fell 9.7% to 362 billion yuan, below the expected 370 billion yuan, sending CATL shares down 2.29%.
Despite Beijing’s efforts to stimulate domestic consumption, rising unemployment and earnings disappointments in key sectors could weigh on Chinese equity performance in the near term. Investors will watch for further policy measures to bolster demand and address labor market concerns, particularly as geopolitical tensions and global trade uncertainties persist.
Industrial production for January and February expanded 5.9% year-on-year, exceeding the 5.3% forecast by analysts. Retail sales grew 4% to 8.373 trillion yuan, meeting expectations. However, China’s unemployment rate increased to 5.4% in February from 5.2% the previous month, averaging 5.3% over the first two months of 2025, raising concerns about labor market weakness.
On the corporate front, Contemporary Amperex Technology ($300750), the world’s largest EV battery maker, posted a 15% increase in 2024 net profit to 50.7 billion yuan, with earnings per share rising to 11.58 yuan. However, the results missed analyst estimates of 11.76 yuan, while revenue fell 9.7% to 362 billion yuan, below the expected 370 billion yuan, sending CATL shares down 2.29%.
Despite Beijing’s efforts to stimulate domestic consumption, rising unemployment and earnings disappointments in key sectors could weigh on Chinese equity performance in the near term. Investors will watch for further policy measures to bolster demand and address labor market concerns, particularly as geopolitical tensions and global trade uncertainties persist.