The Chinese flag at the Lujiazui Pudong Financial District in Shanghai, China, on September 18, 2023.
Raul Ariano Bloomberg Getty Images
China’s industrial profits grew at a faster clip in June, official data showed, although businesses were grappling with the downshift in consumer sentiment amid a faltering economic recovery.
A 3.6% year-on-year in profits last month followed a gain of 0.7% in May, while the earnings of the first half rose 3.5%, accelerating from 3.4% increase in the period January-May, National Bureau of Statistics (NBS). ) data is shown.
The strong data contrasted with a slowing economy, which missed forecasts in the second quarter as the consumer sector slumped amid a sluggish job market and continued housing slump.
About half of the more than 10 mainland-listed alcoholic beverage companies that have released estimates for H1 earnings expect a loss-making first half.
But despite rising trade tensions with the West, optical transceiver companies Zhongji Innolight and Suzhou TFC Optical Communication forecast multiple increases in first-half earnings, both suppliers to the US chip giant. Nvidia become the big winner of global artificial intelligence.
China is trying to provide heavier monetary stimulus to support its fragile economy, surprising markets twice on Thursday by carrying out unscheduled lending operations at lower rates. Just a few days earlier, the authorities cut several benchmark lending rates after a meeting of top leaders, who had already made other major reforms.
State planners and the country’s finance ministry announced plans on Thursday to allocate about 300 billion yuan of long-term special treasury bonds to boost national equipment upgrades and consumer goods trade campaigns.
State-owned companies reported a 0.3% rise in profits in the first half, foreign companies recorded an 11% gain, while private sector companies rose 6.8%, according to a breakdown of NBS data.
The industry’s profit numbers cover companies with annual profits of at least 20 million yuan ($2.75 million) from their main operations.
