Companies turn around in Q3

On Wednesday, China Cosco Holdings Co reported a narrower third-quarter net loss, based on improved port operations and stringent cost controls. The nation's biggest bulk shipper reported a net loss of 1.04 billion yuan from July to September, shrinking from the year-earlier 1.5 billion yuan shortfall.

For the first nine months, Cosco posted a net loss of 2 billion yuan, down sharply from 6.4 billion yuan last year.

After posting fourth-quarter losses last year, listed companies' profits rose almost 10.4 percent in the first quarter of 2013, accelerating to just under 12 percent in the second quarter.

So far, 907 listed companies have released full-year forecasts, with 422 expecting higher profits.

Companies in the biomedicine, construction and building materials industries, along with information technology, are the most optimistic about this year's performance.

Analysts expressed concern about the corporate outlook.

"Economic activity rebounded in the third quarter, but momentum seems to have peaked," said Wang Tao, head of China economics research at UBS Investment Bank.

"We continue to expect a moderation in growth momentum in the fourth quarter.

"The slowdown in credit growth between May and August and the higher cost of funding at the margin, together with fading restocking momentum, are the two key reasons why we expect GDP growth will moderate to 7.6 percent year-on-year in the fourth quarter," Wang said.

The benchmark Shanghai Composite Index fell 0.89 percent to 2,141.17 on Thursday. The index was down 1.5 percent for October, the first monthly loss in four months, as interbank liquidity remained tight.