Profitability of Chinese listed companies中国上市公司盈利实力1 Profitability study: Significance and key conclusions1.1 Significance of profitability studyProfits are the core of business operations in a modern economy. Drive for profitskeep producers producing and retailers selling. As companies expand, capacityexpansion starts to grow beyond its own means. Fund raising becomes anecessity. This can be achieved through loans, bonds or stocks. The key forbank loans or bond issuance is credit worthiness, or borrowers ability to payback debt. For the stock market, the focus is on present and future profitability, interms of earnings, earnings growth, cash flows, margins and market shares. Inthe direct capital market, capital investment destinations are determined throughcomparing return on equity (ROE). Companies that can deliver earnings andcreate maximum return on investment deserve the top picks.1盈利实力探讨：意义和主要结论1.1盈利意义的探讨利润是企业经营在现代经济的核心。努力经营保持生产商生产和零售商的销售。随着公司拓展，业务实力产能扩展起先超出其自己的方式成长。筹款成为必定。筹款可以通过贷款，债券或股票。由于银行贷款或发行债券的关键是信用，或借款人的偿还债务的实力。对于股市，重点是对当代和将来的盈利实力，在收入方面，收入增长，现金流量，利润和市场份额。在干脆资本市场，资本的投资目标是通过比较确定的净资产收益率（ROE）。公司依据值得投资的首选可以实现利益并且创建最大利润。Unlike the original capitalist or entrepreneur, money at the stock market level hasmany choices of investment. It is much less attached to the original investmentplan and typically less picky about which industry or management (smartinvestors do care about sector and management, but mainly from an investmentperspective, not from a personal one) it will invest in. Money is committed tomake money. The higher and the stronger profits are, the bigger the returns theinvestment will reap.不同于原有的资本主义或企业家，在股票一级市场的投资有很多的选择。它更重视将要投资目标的原始投资安排通常较少挑剔哪个行业或管理（聪慧的投资者和管理部门关切的是部门和管理，但主要是从投资的角度来看，不是从个人的），金钱是致力于赚钱。更高，更强的利润，更大的投资会得到回报。While ROE profitability is at the centre of equity markets worldwide, lessEmphasis to it has been given in China. The short life span of Chinas stockexchange, excessive domestic liquidity in the past years and restrictions oncapital flow all appear to have directed attention away from profitability.Management of some listed Chinese companies may also not to be focusing onthis issue.虽然净资产收益率的资产盈利实力是全球股票市场的中心，但它在中国却没有被重视。在中国的证券交易所，在过去几年国内流淌性过多的寿命短对资本流淌的限制好像都干脆关注远离了盈利。一些上市公司的管理中可能也无法把留意力集中于这个问题。In overseas markets, Chinese companies lack of profitability is probably the mostfrequently cited concern amongst equity investors. Less anxiety is expressed in the domestic A-shares markets, but a rising awareness of earnings and otherfundamentals has been evident recently. As Chinese equity markets develop andmature, we believe that domestic investors will place a stronger emphasis onprofitability and demand higher returns on equity.在海外市场，中国企业的盈利实力不足的问题可能是投资者最常常提到的问题。较少的焦虑心情表现在国内A股市场，但收入及其他基础意识抬头，最近已明显。随着中国资本市场发展和成熟，我们认为，国内投资者将会把盈利实力作为较强的重点并且要求较高的股权收益。The profitability issue goes beyond capital markets and investors interests. It isalso a central pillar of a countrys sustainable growth path, because profitsrepresent wealth accumulation. Improvement in profitability is a proxy ofproductivity gains. One key lesson to be learnt from the Asian Financial Crisis inthe late 1990s is that economic growth must be associated with improvement inproductivity and profitability. The old Asian model of pursuing high growththrough continued capital and labour inputs delivered impressive results for yearsor even decades, but ultimately failed. There is an abundant amount ofeconomics literature detailing the “Asian model” and its flaws, so we shall notextend the discussion further in this paper.盈利问题超出了资本市场和投资者的利益。这也是一个国家的可持续发展道路的中心支柱，因为利润代表的是财宝积累。盈利实力的改进是提高生产力的代理。一个关键教训是在90年头末的亚洲金融危机的教训，经济增长必需与生产力和盈利实力的改善有关。旧的亚洲模式的追求，通过持续的资本，并发表了数年甚至数十年的结果令人印象深刻的劳动投入的高增长，但最终失败。有丰富的经济学文献，具体数额的“亚洲模式”，以及其缺陷，所以我们不会在这个文件的扩展进一步探讨。Nonetheless, it is clear that shifting away from “quantitative expansion” or amarket share driven development pattern to “qualitative expansion” or aproductivity driven development pattern is crucial for Chinas long termdevelopment strategy. This is about the sustainability of on-going rapid economicdevelopment. This is about the long-term prospects of China.然而，很明显，转向远离“数量扩张”或市场份额驱动的发展模式，以“质量扩张”或生产力驱动的发展模式是中国的长远发展战略的关键。这关系着正在进行的经济快速发展的可持续性。这关系着中国的长远前景。Research articles focusing on the profitability and corporate governance ofChinese listed companies from a macro perspective from China or internationalfinancial institutions have been few and far between until recent years. Moreover,we took our study a little further by comparing profitability on a global scale aswell as on an industry basis. To our knowledge, this has never been done before,but is significant in order to understand the strength and weakness of the listedcompanies. We also surveyed institutional investors, domestic and aboard, takingadvantage of the unique combination of this project. Again, we believe this t