“More mortgages and consumer loans could turn bad on a housing slump, US tariffs and domestic deflation, even as corporate loan quality appears resilient,” according to Bloomberg Intelligence (BI) analysts Francis Chan and Nicholas Ng.
“First-half results may indicate muted earnings for the rest of the year,” they added.
China’s economy clocked its deepest slowdown of the year in July, raising expectations for further stimulus this year to counter the trade war impact.
Developer Country Garden Holdings Co is also due to report as the property sector remains under strain.
The country’s housing crisis reached a bleak milestone with China Evergrande Group’s delisting in Hong Kong.
“Intensifying competition could also dent e-commerce earnings, putting big players like Meituan and Alibaba Group Holding Ltd at risk,” BI said.
JD.com Inc’s earnings showed its food delivery bet, which threatens to reshape a landscape long dominated by the two incumbents, eat into profits.
Highlights to look out for:
Monday: Luxshare Precision’s earnings outlook brightened after President Donald Trump implied Apple Inc could be exempt from semiconductor tariffs.
“Strong growth in its automotive and communications segments should help diversify its revenue sources,” BI said.
The firm is also gearing up for a Hong Kong listing as early as this year.
Tuesday: “PetroChina’s quarterly revenue likely fell for a fifth consecutive quarter, consensus shows, weighed down by weaker oil prices and lackluster downstream demand,” BI said.
Maybank’s second quarter (Q2) adjusted net income is expected to fall sequentially, weighed down by higher non-performing loans.
“The lender is still expected to report steady loan growth this year after Malaysia negotiated lower tariffs with the US,” BI said.
Wednesday: Meituan likely saw a 27% drop in Q2 adjusted profit, the first decline since 2021, as it copes with intensifying competition.
“The company, along with two rivals, were summoned by a Chinese regulator in July and told to compete “rationally” with promotions to prevent a price war.
“Investments in the Middle East dragged down operating profit,” Jefferies said.
“CNOOC’s quarterly revenue likely slid as weaker oil prices offset volume gains,” BI said.
“Profit in the gas business could improve as prices for Asia liquefied natural gas rose 11% in Q2, thanks to tight global supply, though that won’t be enough to offset weaker oil profit,” BI added.
“Woolworths annual sales growth was underpinned by its Australian supermarkets, though industrial action costs weighed on earnings,” BI said.
The supermarket chain said it will reduce prices for more than 100 popular grocery products from this month.
Thursday: “Cosco Shipping’s Q2 revenue should decline sequentially due to a drop in container freight rates and lower volumes amid the US-China trade war,” BI said.
“Its state-owned parent company is in talks to join the consortium to buy Hong Kong tycoon Li Ka-shing’s overseas ports,” people familiar said last month.
Qantas’ full-year revenue probably rose 8.8% on higher contributions from its domestic segment and the recently shuttered Jetstar Asia business in Singapore.
Corporate governance remains under scrutiny after the carrier was fined a record A$90 million (US$58 million) for workplace wrongdoing by an Australian court.
Friday: “Agricultural Bank of China, Bank of China, China Construction Bank and ICBC could see margins dented if the nation’s central bank continues to introduce measures to preserve economic momentum for the rest of the year,” BI said.
Alibaba’s quarterly revenue was likely supported by its cloud intelligence segment.
“Gross merchandise value of its Taobao and Tmall group surged sequentially with more efforts to attract merchants and shoppers,” BI said.
Progress in artificial intelligence will continue to be in focus.
Country Garden may manage to delay its liquidation case until later this year, people familiar with the matter said, a move that would give it more time to work on its restructuring.
BYD’s quarterly revenue likely rose 25%. It opened its first plant outside Asia in Brazil in July, where it aims to build a local supply chain to localise more than 50% of parts by 2027.