More than half of the listed companies on the Shanghai and Shenzhen stock exchanges are expecting losses or a slowdown in growth in the third quarter because of rising costs and overcapacity, according to Securities Times.

Of the 965 listed companies that have disclosed performance predictions for the third quarter, 489 estimated losses or reduced profits. Many companies said they have seen no significant improvement from the second quarter.

The steel industry has been hit especially hard. Chinese steelmaker Guangdong Shao-steel Songshan Co posted an estimated loss of 1.35 billion yuan ($213.93 million) in the third quarter, while it earned 2.08 million yuan net profit during the same period last year.