China Railway Group Limited (00390) fell more than 3%. As of writing, the stock was down 3.15% to HK$3.69, with a turnover of HK$176 million.

The decline follows the company's release of its Q1 2026 financial results. An analysis by Changjiang Securities noted that for Q1 2026, the company achieved operating revenue of RMB 234.998 billion, a year-on-year decrease of 5.46%. Net profit attributable to shareholders was RMB 4.359 billion, down 27.65% year-on-year. Adjusted net profit was RMB 3.892 billion, a decline of 29.91%. The comprehensive gross profit margin for Q1 2026 was 7.93%, down 0.53 percentage points year-on-year, primarily dragged down by a decline in infrastructure business margins. The gross profit margin for the infrastructure construction business was 6.74%, a decrease of 0.40 percentage points.

The report further indicated that the value of newly signed contracts in Q1 2026 was RMB 338.51 billion, a significant decrease of 39.6% year-on-year, reflecting阶段性压力 in overall business development. Domestic newly signed contracts amounted to RMB 305.73 billion (down 38.2%), while overseas newly signed contracts were RMB 32.78 billion (down 50.1%), showing a同步收缩 in both domestic and international markets.

From a business segment perspective, the engineering construction business was the primary drag, with newly signed contracts of RMB 234.23 billion, a sharp decline of 44.4% year-on-year. The asset management segment saw contracts of RMB 14.63 billion (down 45.7%), and the emerging business segment recorded RMB 45.11 billion (down 37.5%), both showing明显的收缩.