Posted on 27 Nov 2024
Profits of sizable Chinese industrial enterprises declined by 4.3% on year during January-October, reaching Yuan 5.87 trillion ($809 billion), according to the latest data from China's National Bureau of Statistics (NBS) released on Wednesday.
In October alone, gross profits fell by 10% on year. However, the pace of decline slowed significantly, narrowing by 17.1 percentage points compared to the on-year plunge in September, the NBS data showed.
Yu Weining, a statistician with the NBS, attributed the reduced decline last month to the combined effects of existing policies and new stimulus measures from the Chinese government, which started to yield sustained results.
Among the 41 industrial sectors tracked, the electric power and heat production and supply sector led in gross profits for the first ten months with Yuan 549.7 billion, up 13.8% on year. The computer, telecommunications, and other electronic devices sector ranked second, with profits of Yuan 514.9 billion logging an increase of 8.4% on year.
The nonferrous smelting and processing sector recorded the highest growth rate among all profit-making sectors, as its profits during the past ten months surged 40% on year to Yuan 257.9 billion. This far outpaced the upstream nonferrous mining and processing sector, which achieved gross profits of Yuan 79.1 billion, up 21.6% on year, the data showed.
On the other hand, China's steelmaking industry continued to incur losses over January-October, with the cumulative deficit reaching Yuan 23.3 billion. However, the loss narrowed compared to the Yuan 34.1 billion recorded in the first nine months, Mysteel Global observed.
Encouragingly, Yu highlighted that the Chinese steel sector returned to profitability in October for the first time this year. Profits for the steel sector last month surged 80.1% on year, reflecting improved market conditions as macroeconomic policies took effect.
Source:Mysteel Global
