Chinese equities reported second-quarter 2025 earnings largely in line with market expectations, marking the third straight quarter of stability for MSCI China companies.
With 94% of MSCI China and 74% of MSCI China A Onshore market capitalization reporting, MSCI China firms posted a weighted earnings surprise of +2.7%. However, the number of companies missing forecasts stood at -2.7%. This result mirrored the first quarter, which saw a weighted surprise of +3.1% and -3.8% by number of companies.
For A-shares, the picture was more mixed. While weighted earnings came in flat at +0.2%, misses by number of companies were -13.8%, showing weaker momentum compared to Q1.
Revenue also came in softer than expected by number of companies across both MSCI China and A-shares, though weighted figures were broadly in line. Despite revenue challenges, improved cost control and self-help measures helped companies sustain earnings.
By sector, Communication Services and Financials showed solid results across offshore and onshore markets. Offshore Healthcare and onshore Energy also posted net earnings beats by weighted surprise, even though more companies missed than exceeded expectations. Meanwhile, onshore Real Estate and Utilities delivered broad-based misses on both weighted and company counts.
