China pessimism prevails as traders overlook key earnings beats

Earnings from Chinese firms have shown resilience under harsh lockdowns, but traders are zeroing in on pockets of disappointment and dumping stocks while analysts continue to trim forward estimates.

A number of market heavyweights have seen shares slump after a good earnings show, as investors chose to focus on segment misses or simply used the event as an opportunity to take profit. One striking example was battery giant Contemporary Amperex Technology Co., whose stock slid nearly 6 per cent earlier last week even as a 82 per cent jump in profit trumped estimates.

Aggregate earnings per share have delivered an upward surprise