Skip to content China Industrial Profits: December 27-2023
In the first eleven months of 2023, industrial companies in China experienced a 4.4% decrease in profits, totaling CNY 6,982.28 billion. This is an improvement from the previous 7.8% decrease. The Chinese government’s efforts to boost the lagging economy seem to be making an impact, as indicated by the reduced margin pressures. While state-owned businesses saw a smaller decline in profits (6.2% compared to 9.9% in January-October), private companies actually reported a profit increase (1.6% versus a 1.9% decrease earlier).
However, not all industries fared equally. Sectors such as chemical manufacturing, raw materials, non-metallic minerals, petroleum and coal, the food industry, equipment manufacturing, and oil and natural gas experienced significant profit reductions, ranging from 8.5% to 38.5%. On the brighter side, industries like ferrous metal smelting and rolling, electric/power, non-ferrous metal smelting and rolling, machinery and equipment, manufacturing, and automobiles saw profit growths between 2.9% and 275.6%.
A notable surge in industrial profits was observed in November, marking the fourth consecutive month of growth. This 29.5% year-over-year increase can be attributed to recent stimulus measures introduced by the government, showcasing a positive turn in China’s economic recovery efforts.
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