China's Industrial Enterprises Profit Down 27.1% Last Month...Profit Growth Rate Turns Negative

Last month, the profits of Chinese industrial enterprises plummeted by 27.1% year-on-year, turning the annual overall profit growth rate into negative territory.

Chinese President Xi Jinping. [Image source=Yonhap News]

On the 27th, the National Bureau of Statistics of China announced, "Due to the high base effect from the same period last year, the profits of 'industrial enterprises above designated size (enterprises with annual revenue of over 20 million yuan)' decreased by 27.1% in September." The total profits of industrial enterprises from January to September also declined by 3.5% to 5.22816 trillion yuan (approximately 1019 trillion won).

The total profits announced monthly by the National Bureau of Statistics of China for industrial enterprises above designated size serve as an indicator to gauge the profitability trends of manufacturers.

China set this year’s economic growth target at around 5%, similar to last year, and introduced domestic demand stimulation policies such as renewing consumer goods and production equipment. However, it is facing difficulties due to ongoing trade frictions with the Western bloc and a lack of recovery in the real estate market.

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