An analysis of the trading indices across various key industrial sectors in China as of Sept. 30, 2023, is contained in Kroll’s Industry Multiples in China 2023 report. Here are some highlights:

• Consumer discretionary. Trading multiples surged as the sector experienced a post-pandemic upswing. Profits more than doubled, and revenue and market capitalization recovered to prepandemic levels, indicating a robust recovery.
• Consumer staples. This sector witnessed a resurgence in net income, although trading multiples decreased year on year.
• Information technology. This vertical saw an increase in trading multiples due to a fall in net earnings. However, total revenues in the industry experienced a slight recovery, fostering optimism for a more competitive IT sector.
• Financial services. This sector demonstrated resilience despite distress in the property market, with trading multiples indicating confidence in its future prospects.
• Real estate. There are challenges in this sector, but the data suggest a slight recovery in net revenue. However, trading multiples reflected a decline in net earnings, influenced by high inflation and interest rates.
• Other sectors, such as materials, energy, and utilities, presented mixed signals, with varying performances and prospects.

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