Chinese Financials’ Earnings Growth Set to Outpace Wider Market

China’s financial sector is on track to outpace the broader market’s earnings growth, with forecasts for the nation’s banks and insurance firms climbing steadily since August.

Estimated earnings growth for Chinese financial stocks listed in the MSCI Emerging Markets Index has climbed to 3.2% while that for Chinese shares overall has slumped to 1.7%, Bloomberg Intelligence data shows.

The nation’s profits overall have been hit by US tariffs and sluggish spending among domestic consumers, though the outlook has started to brighten. Meanwhile investors betting on an easing of trade tensions and improvement in the domestic economy have driven gains ...