Chinese industrial profits rise for fourth consecutive month

Industrial profits for the People’s Republic of China (PRC) extended gains for a fourth consecutive month in November, irrespective of weakening demand playing spoilsport on business growth predictions.

The industry eyed policy for support amid a bleak market, Reuters reported.

The profit rise of 29.5 per cent was on top of a 2.7 per cent increase in the previous month, which added to the mixed situation in the economy.

On one end, robust growth in industrial output was posted while on the other, missing forecasts faced the Chinese economy.

Industrial earnings were limited to a single-digit 4.4 per cent for the first 11 months of 2023 as compared to the same period last year, the National Bureau of Statistics (NBS) data on Wednesday reflected.

A host of pro-growth measures were in place to ease a post-pandemic recovery, marked by patchy patterns.

Even after this, China appears on track to achieve its growth target of around 5 per cent for 2023.

Officials were also confident about more favourable economic conditions next year, however recovery remains on vulnerable grounds amid consistent property sector weakness, rising deflationary pressures and other issues, which needs a policy catalyst for some uptick.

Chinese chemicals producer Do-Fluoride New Materials Co expected 2023 net profit to fall by between 68.17 per cent to 71.25 per cent on the back of intensified competition and weaker-than-expected downstream demand.

State-owned firms saw earnings dip 6.2 per cent in the first 11 months while foreign firms reported an 8.7 per cent tumble. 

Private-sector companies posted a 1.6 per cent gain, data suggested.

Industrial profit numbers cover firms with annual revenues of at least 20 million yuan ($2.80 million) from their main operations.

(With Reuters Inputs)