China's Industrial Profits Rise 29.5% in November... 4 Consecutive Months of Growth

Industrial profits, which indicate the profitability of Chinese companies, have been on the rise for four consecutive months.

On the 27th, the National Bureau of Statistics of China announced that the total profits of industrial enterprises with annual revenue exceeding 20 million yuan in November reached 866.86 billion yuan (approximately 156.902 trillion KRW), up 29.5% year-on-year. The growth rate has increased for four consecutive months, following 2.7% in October, 11.9% in September, and 17.2% in August.

[Image source=Reuters Yonhap News]

On a cumulative basis from January to November, industrial profits totaled 6.98228 trillion yuan, down 4.4% compared to the same period last year. This marks a slight improvement compared to the cumulative decline of 7.8% reported until the previous month.

Looking at cumulative profits by ownership type, state-owned enterprises recorded 2.24114 trillion yuan, down 6.2% year-on-year. Joint-stock companies posted 5.15937 trillion yuan, and foreign-funded enterprises along with Hong Kong, Macao, and Taiwan-invested enterprises recorded 1.62178 trillion yuan, decreasing by 3.1% and 8.7%, respectively. In contrast, private enterprises recorded 2.00231 trillion yuan, an increase of 1.6% compared to the previous year.

By industry, mining saw the largest decline with an 18.3% drop year-on-year, while manufacturing decreased by 4.7%. On the other hand, energy production and supply industries such as electricity, thermal energy, and gas increased by 47.3%. Wei Weining, a statistician at the Industrial Statistics Department of the National Bureau of Statistics, analyzed, "With the continued effects of macro policies in November, domestic demand is gradually recovering, industrial production is accelerating, and the efficiency and profits of industrial enterprises are continuously improving."

The Chinese economy has recently raised expectations for recovery as key indicators such as retail sales and industrial production have improved. Industrial production in November increased by 6.6% year-on-year, significantly exceeding the forecast (5.6%) and the previous month’s figure (4.6%). Retail sales rose by 10.1% year-on-year, marking the largest increase in six months since May (12.7%).

However, China’s inflation rate recorded negative growth for two consecutive months until last month, raising concerns about deflation. The consumer price index (CPI) in November fell by 0.5% year-on-year, marking two consecutive months of decline following the previous month. Non-food prices dropped by 0.4%, while food prices fell sharply by 4.2%. During the same period, the producer price index (PPI) also declined by 3.0% year-on-year. China’s PPI has been negative for 14 consecutive months since October last year (-1.3%).

This content was produced with the assistance of AI translation services.