Asia Briefing: Many views of China’s stock market

While the outlook for the broader economy is a little mamahuhu (Chinese for "so so"), there are reportedly great things expected of the Chinese stock market.

A majority of listed firms that have released preliminary reports expect to have performed better in 2013, according to the Shanghai Securities News.

China’s key stock index, the Shanghai Composite Index, lost more than 6 per cent last year.

Among the 1,734 companies to release forecasts for last year, 1,000 expect better results, while 821 anticipate rising profits and 179 expect reversals of previous losses.

Altogether 398 firms predicted increases of more than 100 per cent in net profits, led by stocks known as special treatment (ST) shares, which include Shenzhen International Enterprise Co and Yihua Real Estate.

Special treatment firms are those that have recorded two consecutive years of net losses, which makes de-listing a high possibility. Thanks to restructuring and asset transfers, most ST firms reversed losses last year, the report said.

Quite when remains an open question however.

China shares fell during their first trading session of the new lunar new year, dragged down by Chinese financial and consumer stocks on further signs that the world's second-largest economy was losing momentum.