Chinese (SSE) Market Analysis & Valuation
UpdatedJun 03, 2023
DataAggregated Company Financials
Companies4891
- 7D0.6%
- 3M-5.8%
- 1Y-1.5%
- YTD0.7%
In the last week, the market has stayed flat, however the Communication Services sector stood out, gaining 8.3%. In line with that, the market has also been flat over the past year. Earnings are forecast to grow by 25% annually.
Market Valuation and Performance
Has the Chinese Market valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sun, 04 Jun 2023 | CN¥70.8t | CN¥49.0t | CN¥2.8t | 36.1x | 25.1x | 1.4x |
| Tue, 02 May 2023 | CN¥72.0t | CN¥49.1t | CN¥2.8t | 35.1x | 25.5x | 1.5x |
| Thu, 30 Mar 2023 | CN¥72.2t | CN¥48.2t | CN¥2.9t | 35.8x | 25x | 1.5x |
| Sat, 25 Feb 2023 | CN¥73.2t | CN¥47.7t | CN¥2.9t | 36.4x | 25.6x | 1.5x |
| Mon, 23 Jan 2023 | CN¥72.7t | CN¥47.4t | CN¥2.9t | 34.7x | 25.5x | 1.5x |
| Wed, 21 Dec 2022 | CN¥67.5t | CN¥47.5t | CN¥2.8t | 32.9x | 23.9x | 1.4x |
| Fri, 18 Nov 2022 | CN¥69.1t | CN¥47.5t | CN¥2.8t | 34.6x | 24.5x | 1.5x |
| Sun, 16 Oct 2022 | CN¥67.1t | CN¥46.6t | CN¥2.9t | 31.8x | 23.5x | 1.4x |
| Tue, 13 Sep 2022 | CN¥71.2t | CN¥46.5t | CN¥2.8t | 34.1x | 25.1x | 1.5x |
| Thu, 11 Aug 2022 | CN¥71.9t | CN¥46.2t | CN¥2.8t | 35.3x | 25.2x | 1.6x |
| Sat, 09 Jul 2022 | CN¥72.9t | CN¥46.0t | CN¥2.8t | 33.7x | 25.8x | 1.6x |
| Mon, 06 Jun 2022 | CN¥67.4t | CN¥46.1t | CN¥2.8t | 32.2x | 23.8x | 1.5x |
| Wed, 04 May 2022 | CN¥62.9t | CN¥46.0t | CN¥2.8t | 28.3x | 22.2x | 1.4x |
| Fri, 01 Apr 2022 | CN¥69.2t | CN¥45.1t | CN¥3.0t | 32x | 23x | 1.5x |
| Sun, 27 Feb 2022 | CN¥74.7t | CN¥44.3t | CN¥3.0t | 35x | 25.2x | 1.7x |
| Tue, 25 Jan 2022 | CN¥76.6t | CN¥44.1t | CN¥3.0t | 35.9x | 25.9x | 1.7x |
| Thu, 23 Dec 2021 | CN¥79.6t | CN¥43.7t | CN¥2.9t | 38.1x | 27.2x | 1.8x |
| Sat, 20 Nov 2021 | CN¥77.1t | CN¥43.7t | CN¥2.9t | 36x | 26.4x | 1.8x |
| Mon, 18 Oct 2021 | CN¥74.6t | CN¥42.5t | CN¥2.9t | 33.2x | 25.4x | 1.8x |
| Wed, 15 Sep 2021 | CN¥77.5t | CN¥42.3t | CN¥2.9t | 35.6x | 26.5x | 1.8x |
| Fri, 13 Aug 2021 | CN¥75.8t | CN¥42.4t | CN¥2.9t | 35x | 26x | 1.8x |
| Tue, 08 Jun 2021 | CN¥74.3t | CN¥40.0t | CN¥2.7t | 33.5x | 27.6x | 1.9x |
| Mon, 01 Mar 2021 | CN¥69.4t | CN¥36.9t | CN¥2.4t | 36.3x | 29.3x | 1.9x |
| Thu, 03 Dec 2020 | CN¥66.0t | CN¥35.4t | CN¥2.1t | 40x | 30.8x | 1.9x |
| Sun, 06 Sep 2020 | CN¥65.7t | CN¥34.1t | CN¥2.0t | 44.7x | 32.2x | 1.9x |
| Wed, 10 Jun 2020 | CN¥51.0t | CN¥33.3t | CN¥2.0t | 37.4x | 25.3x | 1.5x |
Price to Earnings Ratio
25.3x
Current Market PE
- Investors are relatively neutral on the Chinese market at the moment, indicating that they expect earnings will grow in line with historical growth rates.
- The market is trading close to its 3-year average PE ratio of 26.3x.
Past Earnings Growth
- The earnings for Chinese listed companies have grown 12% per year over the last three years.
- Revenues for these companies have grown 14% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Sector Trends
Which sectors have driven the changes within the Chinese Market?
| CN Market | 0.56% | |
| Telecom | 8.28% | |
| Tech | 2.46% | |
| Real Estate | 2.27% | |
| Materials | 0.85% | |
| Consumer Discretionary | 0.35% | |
| Industrials | 0.21% | |
| Financials | 0.18% | |
| Utilities | -0.92% | |
| Consumer Staples | -1.29% | |
| Energy | -1.54% | |
| Healthcare | -1.94% | |
Sector PE
- Investors favour the Real Estate sector the most for future growth, which is trading above its 3-year average PE ratio of 141x.
- The market's confidence is likely because analysts are expecting annual earnings growth of 21.9% which is higher than its past year's earnings decline of 20.2% per year.
- The Energy sector is the least preferred by investors for future growth, which is trading below its 3-year average of 13.7x.
Forecasted Growth
- Analysts are most optimistic on the Tech sector, expecting annual earnings growth of 32% over the next 5 years.
- This is better than its past earnings decline of 2.7% per year.
- In contrast, the Energy sector is expected to see its earnings grow by 8.8% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | Sector | |
|---|---|---|---|---|---|---|
| 300750 Contemporary Amperex Technology | CN¥228.44 | 3.8% +CN¥37.1b | -5.9% | PE25.7x | Industrials | |
| 688111 Beijing Kingsoft Office Software | CN¥471.00 | 14.1% +CN¥26.9b | 124.0% | PE191.7x | Tech | |
| 2230 iFLYTEKLTD | CN¥66.80 | 18.0% +CN¥23.5b | 80.9% | PE392.4x | Tech | |
| 601138 Foxconn Industrial Internet | CN¥17.83 | 6.2% +CN¥20.7b | 89.7% | PE17.8x | Tech | |
| 601390 China Railway Group | CN¥7.87 | 7.7% +CN¥13.9b | 21.3% | PE6.6x | Industrials |
Market Insights
In just the last month, we’ve had US debt ceiling talks go from global crisis mode to a potential resolution (still to be determined)...
Continue reading