economy - How profitable are Chinese companies?

The Economist has a go at this tricky question. "Profit margins are thin and falling," as the conventional wisdom goes, or not? The Economist describes the debate and keep the conclusion on the safe side:

Even if total profits are booming, China still has many corporate duds. A fifth of all industrial firms (and a third of state-owned enterprises) continue to lose money. Experienced investors also know that even if they find a profitable firm, all too often they fail to provide foreign investors with a decent return. This is good reason for investors to tread carefully. However, for the economy as a whole, China's rising profits should promise more years of strong growth ahead.

Sun Bin warns for a few pitfalls.