China’s industrial profits continue to decline for the fourth straight month, falling by 7.3% in November

Industrial profits in China Extending the decline to the fourth month in a row, down 7.3% in November compared to the previous year, indicating that Beijing’s stimulus measures have not yet succeeded in significantly halting the decline in corporate profits.

However, the decline in profits was smaller than the declines in previous months. they Declined by 10% year on year In October after a It fell by 27.1% in September – The biggest drop since March 2020 according to Wind information.

Suan Teck Kin, head of research at UOB, said there was “no surprise” when it came to the continued decline in profits faced by industrial companies, especially in China’s deflationary environment.

She added that “the worst is over” for the Chinese economy in light of the series of stimulus. “I think it’s just bottomed out, and now it’s on the way up,” he told CNBC’s “Street Signs Asia.”

Industrial profits are a key indicator of the financial well-being of China’s factories, utilities and mines. The earnings show how companies’ balance sheets are stacking up in the wake of Beijing’s steps to stimulate the economy.

Industrial companies with foreign investments, including those with investments from Hong Kong, Macau and Taiwan, saw their profits fall by 0.8% in the January-November period, compared with last year.

“With the effective implementation of existing policies, the accelerated introduction of a package of additional policies, and the continuing impact of the policy mix, industrial production above the set size has grown steadily,” said Yu Wening, a statistician at the World Bank. National Bureau of Statistics, According to Google translation of her comments in Chinese.

Despite a series of stimulus measures that have been introduced Since late SeptemberRecent economic data from China suggests that the world’s second-largest economy continues to struggle with disinflation, driven by weak consumer demand and a prolonged contraction in the real estate market.

China’s consumer inflation rate fell to its lowest level in five months In November, while State export and import data Missed expectations. China The latest retail sales data was also disappointingMissing expectations.

However, some parts of the Chinese economy have shown signs of recovery, with manufacturing activity expanding Two months in a row It reached its highest level in five months in November.

Earlier this month, senior Chinese officials committed An important meeting to set the economic agenda To enhance monetary easing efforts, including lowering interest rates to support the faltering economy.

the The World Bank on Thursday raised its economic growth forecast for China 2024 and 2025, reflecting recent policy adjustments. It now expects China’s GDP to grow by 4.9% in 2024 compared to its previous forecast of 4.8%, while in 2025, China’s GDP is expected to expand by 4.5%, higher than the organization’s previous forecast of 4.1%.

However, the World Bank warned that China’s beleaguered real estate sector, coupled with weak household and business confidence, will remain a headwind to its growth.