also visible in the quarterly financial results, including an accelerated transition to innovation-based growth.
According to Wind Info, sectors like communication, non-banking financials and co
mputers topped the earnings growth of all sectors of the A-share market in the first quarter.
“The communication sector registered a 310-percent growth in profits in
the first quarter, bolstered by the acceleration of 5G infrastructure construction and the rec
overy of industry giant ZTE Corp,” said Wang Yi, chief strategist at Shenzhen-based Great Wall Securities.
In the future, as large-scale commercial uses of 5G are poised to take
place, profitability of related companies will continue to see improvements, he said.
Listed companies have also stepped up innovation capabilities. In 2018, Sh
enzhen-listed companies increased their aggregate research and dev
elopment expenditure by 22.3 percent, with 11.4 percent of them having R&D expenditure in excess of 10 percent o