China firms report surge in new orders

China’s A-share listed companies have reported a wave of major contract wins and full order books at the start of 2026, signaling pockets of resilience in the economy and strengthening market confidence in a gradual recovery. Financial data provider Wind shows over 100 listed firms disclosed significant bid wins or contract signings shortly after the year began, with total newly secured orders exceeding 43 billion yuan (about $6.2 billion) concentrated largely in infrastructure projects. Contracts above one billion yuan were mainly in the infrastructure sector, while ecological and environmental projects—covering sanitation, water conservation and waste treatment—also recorded sizable launches, underscoring green infrastructure as a rising growth area.

The new orders span domestic mega-projects and overseas deals, boosting order backlogs across manufacturing, energy transition, transport equipment and industrial automation. Companies tied to renewables, grid upgrades, semiconductors, robotics and advanced materials cited multi‑year contracts that improve revenue visibility and support production planning. Export-oriented firms reported rising overseas demand from regions such as Southeast Asia, the Middle East and parts of Europe, helping offset softer domestic consumption and property-sector woes.

Analysts and executives say the richer order books provide direct operational support, stabilize earnings outlooks and help revitalize industrial chains. Wind data indicate more than 750 listed firms voluntarily disclosed order developments in 2025 (about 13.8% of the market), and nearly 60% of companies with full order books are expected to post year‑on‑year net profit growth or significantly narrower losses in 2025, with some forecast to sustain double‑digit profit growth through 2027.

Policy support and structural trends—electrification, digitalization, green upgrading and supply‑chain localization—are cited as drivers. Infrastructure investment is increasingly aligned with national priorities such as new energy and smart‑city projects, contributing to diversified, higher‑value order composition. Market commentators note that proactive disclosure of orders during earnings seasons helps steady investor expectations and channels capital toward higher‑quality firms.

Caveats remain: margins are under pressure from raw material costs and competitive bidding; public‑sector project payment cycles can lengthen cash‑flow risks; and the recovery is uneven—consumer and property sectors lag while investment and exports lead. Analysts warn that strong order intake does not guarantee higher profits without effective cost and execution management.