MKsports East China's Jiangxi Province on May 20, 2024. China's industrial production jumped 6.7 percent year-on-year in April, compared with growth of 4.5 percent in March, National Bureau of Statistics data showed.Photo: VCG" src="https://www.globaltimes.cn/Portals/0/attachment/2024/2024-05-19/c179361a-bd25-4091-bc81-635c95bd9ddc.jpeg" />

Employees work on intelligent production line to churn out integrated circuits to fill orders in a factory in Ruichang, East China's Jiangxi Province on May 20, 2024. Photo: VCG

About 1,500 listed Chinese companies had made preliminary earnings announcements for the first half as of Sunday, with many in sectors such as semiconductors, vehicles and retail reporting remarkable revenue growth. Analysts said that the economic recovery, targeted policies to boost domestic demand and accelerated domestic replacements contributed to the positive results, and they expressed confidence in the long-term rebound of the A-share market.

According to industry information data provider Wind, A-share companies including Chen Ke Ming Food Manufacturing Co, molybdenum producer CMOC Group and Shanghai Metersbonwe Fashion and Accessories Co, were among those reporting strong first-half results, with profits rising by up to 1,025 percent year-on-year.

Some semiconductor companies posted revenue recoveries, especially storage chip manufacturers. Tianshui Huatian Technology Co, which packages and tests integrated circuit products, said on Saturday that first-half profit could reach 190 million yuan ($26.2 million) to 230 million yuan, up 202 percent to 266 percent year-on-year.

IC design firm Montage Technology said its estimated first-half profit would be 583 million yuan to 623 million yuan, up more than sixfold year-on-year.

Veteran telecom industry observer Ma Jihua attributed chip companies' performance to a couple of factors.

"Sales of automobiles, especially new-energy vehicles, and smartphones remain robust this year, driving the IC sector's prosperity," Ma told the Global Times on Sunday.

Amid the ongoing US crackdown on Chinese high-tech firms, domestic companies are turning to local replacements for internet and artificial intelligence chips, Ma said. Along with efforts to fight for breakthroughs in core technologies, Chinese chip firms have achieved notable growth in their production capacity and international competitiveness, giving a boost to chip exports, he said.

China's first-half foreign trade reached to 21.17 trillion yuan, up 6.1 percent year-on-year, indicating positive momentum and the improvement of the national economy.

In the first half, the economy maintained an overall recovery, serving as strong support for listed companies' financial results, analysts said. 

To support the ongoing economic recovery and healthy development of the A-share market, the authorities have rolled out a series of targeted policies. In March, the State Council, the cabinet, released an action plan to promote the large-scale renewal of equipment and trade-ins of consumer goods. 

In April, the cabinet released a guideline on strengthening regulation, forestalling risks and promoting the high-quality development of the capital market.

Recently, the China Securities Regulatory Commission suspended securities relending, a tool used for short-selling, in another step to stabilize the capital market.

"The authorities are expected to increase efforts to stabilize economic growth in the second half of the year, which is expected to further lift investors' confidence," Yang Delong, chief economist at Shenzhen-based First Seafront Fund, told the Global Times on Sunday.

Both fiscal and monetary policies should step up to support private enterprises' recovery and encourage them to create more jobs and increase incomes, Yang said. A series of forceful macro adjustments will stabilize the real estate market and lift the stock market, he said, expressing confidence in China's long-term economic prospects.