China’s industrial profits show biggest gains in eight months as hopes rise for end to US-China trade war
- Industrial profits rose by 13.9 per cent year on year in March to 589.52 billion yuan (US$87.5 billion) in the biggest increase since July,
- But deep structural problems in the economy mean rebound from four-month slump could be short-lived, analysts say
Profits at China’s industrial firms made their biggest gains in eight months in March in the latest sign that the economy is stabilising in response to Beijing’s stimulus and as hopes rise for a deal in the trade war with the United States.
Industrial profits rose by 13.9 per cent year on year in March to 589.52 billion yuan (US$87.5 billion) in the biggest increase since July, and rebounding after four months of contraction, the National Bureau of Statistics said on Saturday.
The bureau said the rebound was driven by growth in production and sales, with rises in prices translating into higher profits. Industrial enterprises were also more efficient, it said.
The data tracks the value of the sales or shipments of goods of large companies to third parties.
Profits earned by private firms rose 7 per cent while those earned by state-owned enterprises fell 13.4 per cent.
Among the 41 industries surveyed, 28 saw year-on-year profit increases. Those sectors included oil, coal and other fuel processing; ferrous metal smelting and rolling processing; automotive; and special equipment manufacturing industry. At the same time, profits fell in chemical raw materials and coal mining.
