According to statistics released by Wind Information, by April 27 this year 217 of 225 companies listed after January 1 2014 had released their annual reports for 2014. Almost 70 percent of these newly-listed companies have realized a year-on-year growth in net profits, and in the case of emerging industries such as electronics, media and medicine, growth has been rapid.

Those newly listed companies which have released their annual reports for 2014 realized total revenues of 53.8 billion USD in 2014, 11.3 percent up from 2013; and net profits of 5.88 billion USD in 2014, 2.8 percent down from 2013.

Emerging industries are growing fast. 80 percent of the companies in electronics realized net profit growth, with an average growth rate over 17 percent; the average net profit growth rate in the media industry exceeded 33 percent; and the net profit of pharmaceutical manufacturing industries also maintained growth, with Fujian Cosunter Pharmaceutical realizing a 46 percent net profit growth from 2013.

Thanks to the warming stock market and the increase in trading volume, security companies experineced significant growth in 2014, with average net profit growth of over 80 percent.

Zhao Xijun, assistant dean of financial and monetary institute of Renmin University, said that growth in emerging industries such as electronics, media and medicine shows that China's economic restructuring and industrial upgrading is producing results.

Stocks in most of the abovementioned companies are performing well in the secondary market. Many stocks have achieved consecutive daily limits, and the price of 70 percent of these stocks has doubled.

According to Zhao Xijun, good performance in secondary market means that investors are anticipating further increases in these stocks. Ongoing economic reform has encouraged the capital market, and prudent monetary policies have also generated liquidity.

The article is edited and translated from《从新上市公司年报看经济》, source: People's Daily, author:Li Tong and Fu Changchao.