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As the outlook for nearly 60 percent of companies remained positive for the year ahead, 39 percent of the A-share market listed companies disclosed a negative forecast. Danhua Chemical Technology, Harbin ZhongFei New Technology, Zhejiang Sunriver Culture and 91 other companies were estimated to swing to a net profit drop in 2019, down over 1,000 percent year-on-year.
As the pandemic has disrupted global supply chains, the demand side is heavily impacted, but "from the supply end, China has done an excellent job", Gibbs added.
As the middle-income group grows and people seek better job opportunities and medical facilities, the long-term population growth of higher-tiered cities will likely continue. Companies are responding by turning their attention to cities like Shenzhen, Nanjing, and Hangzhou. Despite the COVID-19 pandemic, new project launches in these cities were recently sold out in half a day.
As trade may not provide the same amount of stimulus to growth in the coming years as it provided in the past, each economy will have to focus on alternative growth drivers, especially elevating the productivity and skills of all workers, Romer said.
As the epidemic may affect business activities of companies and their tax payment ratings, Han said that the STA has extended tax filing deadline four times, granting deferred filing and payment for 121,000 and 51,000 taxpayers since February, respectively.