SHANGHAI/BENGALURU—Chinese firms’ profit growth has fallen sharply while debt levels have recorded a rare drop, a Reuters analysis of earnings data shows—signs of strain brought on by Beijing’s crackdown on leverage as well as a trade war with the United States.
Easy access to funds had long fueled growth for mainland Chinese firms but a concerted campaign by authorities to rid the financial system of excessive liquidity and rein in irrational corporate expansion is taking its toll.
