China Industrial Enterprises Profit Growth Rate Slows to 4.2%, Lowest in 20 Months

Trend of Profit Growth Rate of Chinese Industrial Enterprises [Image source= Bloomberg]

[Asia Economy Reporter Park Byung-hee] Bloomberg reported on the 27th (local time) that the profit growth rate of Chinese industrial enterprises recorded the lowest level since April 2020.

The National Bureau of Statistics of China announced that the profits of industrial enterprises in December last year reached 734.2 billion yuan, an increase of 4.2% compared to the same period last year. The profit growth rate halved from 9% in November. Bloomberg had expected the growth rate in December to maintain the same 9% as in November.

The National Bureau of Statistics stated that the annual profits of industrial enterprises last year were 8.7 trillion yuan, an increase of 34.3% compared to the same period the previous year.

Senior statistician Zhu Hong of the National Bureau of Statistics commented in a statement, "The profits of industrial enterprises increased at a relatively fast pace last year," and "corporate efficiency is steadily improving."

However, Statistician Zhu pointed out, "The profit growth rate significantly slowed down in November and December last year," and "small and medium-sized enterprises are facing relatively large management difficulties, and the number of loss-making companies remains high."

The profit growth rate of industrial enterprises has been declining since reaching a peak of 92.3% in March last year. Until October, it maintained a double-digit growth rate compared to the same month the previous year, but dropped to single digits from November.

The National Bureau of Statistics compiles industrial enterprise profits based on large enterprises with annual main business revenue of 20 million yuan or more.

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