TMTPOST – Wang Zonghao, Head of China Equity Strategy at UBS, has projected a 7% increase in earnings per share (EPS) for the MSCI China Index by the end of 2024. Wang highlighted that, based on the 2024 half-year financial reports, constituent companies of the MSCI China Index have shown a 4% year-on-year increase in net profit, with revenue growth remaining flat. Notably, earnings growth has outpaced revenue growth. One of the key highlights for the second quarter has been capital expenditure control. Capital expenditure by MSCI China’s non-financial companies dropped by 4% in the first half of the year, marking the slowest growth rate since 2017, with the most significant reductions seen in the industrial and renewable energy sectors. Wang attributed the strong performance of downstream industries (excluding real estate) in terms of revenue and profit growth to better cost control and improved revenue structures, such as a higher proportion of overseas income.