The profit growth of China's listed companies dropped sharply in the first half, a result of economic slowdown and a weak domestic stock market.

China Securities News reported on Monday the sales revenue of the listed companies amounted to 5.65 trillion yuan (827.3 billion US dollars) in the January-June period, a rise of 27.98 percent year on year. The net profit totaled 553.3 billion yuan, up 16.04 percent compared with a year-earlier growth rate of 70 percent.

The newspaper cited figures generated from the interim statements released by 1,619 listed companies by August 30.

Analysts said profits were affected by an economic slowdown and a weak domestic stock market, while last year's results were boosted by a bullish equity market. The stock market has declined by more than half since its peak last fall.

The top-10 companies, including six financial heavyweights contributed 52.6 percent of the profits. Electronic, telecom and food and beverage enterprises experienced more than a 50 percent rise in earnings on average.

Companies in power supply, oil and gas, insurance, furniture and paper making were plagued by loss.

Operating cash flow of the companies contracted sharply as 631 companies saw negative inflow and 762 firms had a cash flow decline.

Operating cash flow per share dropped 45.45 percent to 0.3 yuan.

The nation saw a 10.4 percent rise of gross domestic product(GDP) in the first half. This was 1.8 percentage points lower than the same period last year, amid slowing world economic activity and domestic policies intended to cool China's economy.

About 10 percent of the companies had yet to release interim reports. In addition, 580 listed firms forecast their performance growth for the first three quarters, with net profit predicted to total 107.35 billion yuan, 22.78 percent more than a year ago.

(Xinhua News Agency September 1, 2008)