Companies on the Chinese mainland are leading the recovery of Asian corporate earnings, as their net profit grew by 43 percent year on year during their most recent quarters, outpacing the overall Asian average of 34 percent, according to data compiled by Nikkei. 

China's companies have thrived recently, and the country's industrial transformation appears to have been accelerated by the COVID-19 epidemic, and the stimulus policies rolled out by Beijing seems to have been effective as well. 

They accounted for about two-thirds of the 201 best-performing businesses in Asia. At the top of the list is China's e-commerce giant Alibaba, which boasted a net quarterly profit of 6.7 billion U.S. dollars. Tencent also led the pack with earnings of 4.7 billion U.S. dollars. 

Chinese tech companies earned an aggregate net income of 56.8 billion U.S. dollars last quarter, well above the income of 39.7 billion U.S. dollars a year earlier. The recovery also extends to parts of the country's manufacturing industry, for example, Shanghai-based SAIC Motor reported a 27-percent bounce in net profit for the second quarter. 

China's economy returned to modest growth in the second quarter of 2020 and reverted from the first contraction on record in the first quarter this year, as COVID-19 eases and policymakers announced economic packages. 

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China's Q2 GDP growth recovers to 3.2% after steep slump, beats forecast 

Chinese President Xi Jinping raised the "dual circulation" development pattern in May to boost the healthy growth of the economy. Under such a pattern, China's economy posits to be dominated by domestic economic circulation and facilitated by circulation between China and the rest of the world.