China’s industrial profits fell for the fourth month in a row, falling 7.3% in November

China’s industrial profits continued decline for the fourth month in a row, down 7.3% in November from a year ago, signaling that Beijing’s stimulus measures have not yet substantially stemmed the slide in corporate profits.

However, the drop in profits was smaller than the drop in previous months. They are decreased by 10% year-on-year in October after a In September, it decreased by 27.1%. — their steepest drop since March 2020, according to Wind.

“There is nothing surprising” when it comes to the continued decline in profits for industrial companies, especially amid China’s disinflation, said Suan Teck Kin, head of research at UOB.

However, “the worst is over” for China’s economy, given a number of incentives, she added. “I think it just bottomed out and now it’s on its way up,” he told CNBC’s “Street Signs Asia.”

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

Between January and November, China’s industrial output fell 4.7% year-on-year, compared with a 4.3% year-on-year fall in the first 10 months of 2024.

Foreign-invested industrial firms, including those from Hong Kong, Macau and Taiwan, saw their profits fall by 0.8% from a year ago from January to November.

Mining profits fell 13.2% year-on-year in the first 11 months of the year, while industrial profits fell 4.6%. However, in the utility industry — electricity, heat, gas and water supply — for January-November, the profit increased by 10.9% compared to the same period last year.

“Thanks to the effective implementation of existing policies, the accelerated implementation of a package of additional policies, and the preservation of the policy combination effect, above-target industrial production has grown steadily,” said Yu Weining, a statistician with National Bureau of Statistics, according to a Google translation of her Chinese comments.

Despite a number of introduced stimulus measures since the end of SeptemberThe latest economic data from China shows that the world’s second-largest economy continues to struggle with disinflation, driven by weak consumer demand and a prolonged downturn in the real estate market.

Consumer inflation in China fell to a five-month low in November, and Art data on the country’s exports and imports expectations are not met. of China the latest retail sales data also disappointedpredictions are missing.

However, some parts of the Chinese economy are showing signs of recovery, with manufacturing activity expanding at two months in a row and hitting a five-month high in November.

Earlier this month, top Chinese officials made the commitment a key meeting on the economic agenda step up efforts to ease monetary policy, including lowering interest rates to support the ailing economy.

The The World Bank on Thursday raised its forecast for China’s economic growth 2024 and 2025, reflecting recent policy adjustments. China’s GDP is now expected to grow by 4.9% in 2024, up from a previous forecast of 4.8%, and in 2025, China’s GDP is expected to grow by 4.5%, higher than the organization’s previous forecast of 4 ,1%.

However, the World Bank warns that China’s struggling real estate sector, along with depressed household and business confidence, will remain a headwind to its growth.