China’s economic concerns mount as industrial profits crash to lowest since 2011

Industrial profits stood at 708 billion yuan (US$105.4 billion) for January and February, according to figures released by the National Bureau of Statistics

Manufacturing profits fell by 15.7 per cent year-on-year, with profits from oil processing companies collapsing 70.4 per cent

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The data tracks profits from firms that report more than 20 million yuan (US$2.98 million) in revenue from their main business, and it is divided into private and public sector companies. Photo: Reuters

Finbarr Berminghamin BrusselsandKaren Yeungin Hong Kong

Published: 11:06am, 27 Mar 2019Updated: 10:05pm, 27 Mar 2019

China’s industrial companies saw their profits fall by 14 per cent in the first two months of the year as the impact of the trade war with the United States and widespread economic slowdown continued to take root.

Industrial profits stood at 708 billion yuan (US$105.4 billion) for January and February, according to figures released by the National Bureau of Statistics (NBS) on Wednesday.

This was the worst performance since October 2011, when the method for measuring industrial profits was changed. Overall, including the former methodology, it was the biggest collapse since May 2009.

This followed a 1.9 per cent decline in December and marks the continuation of a downward trend in the world’s second largest economy. December’s industrial profits reading had been the worst since the end of 2015 and the second consecutive decline.

The decline in China’s automotive sector has been felt by companies in that industry, which reported profit fall of 42 per cent after China’s vehicles sales fell for the eighth straight month in February. Photo: Simon Song

The statistics bureau did not release the year-on-year change and value in January or February alone due to the differences in the timing of the Lunar New Year holiday, which took place in February and was earlier than last year.

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