Chinese corporate earnings growth is expected to average around 30% in 2008, according to news agency Reuters.

Research from the China Academy of Social Sciences has shown the earnings of major industrial companies have increased by over 37% every year from 1998 to 2006. Charlie Awdry, manager of the Gartmore China Opportunities Fund, believes companies within the consumer sector will be particularly resilient as the Chinese economy faces further monetary tightening.

Growth expanded 11.5% in the third quarter, encouraging officials to announce a move from a ‘prudent’ to a ‘tight’ policy framework in December. Chinese President Hu Jintao has also promised to increase incomes for rural workers and boost the role of consumption within the economy. Measures aimed at this include increasing the minimum wage and broadening welfare payments.

Awdry said: “As concerns over the growth outlook for Western economies rise and earnings growth rates moderate, we continue to focus on domestic Chinese investment and consumer industries. In these areas, the outlook is buoyant and earnings growth picture is robust.”