China’s industrial giants saw profits tumble in first half of 2020, but recovery continued in June

Industrial profits at China’s biggest firms fell by 12.8 per cent year on year in the first six months of 2020, following the coronavirus shutdown

But monthly growth returned in May and June from a year earlier, amid signs that the economy is getting back up to speed

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China’s big industrial firms saw profits start to recover over May and June, but remained in the red for the first six months of 2020. Photo: Xinhua

Published: 9:41am, 27 Jul 2020Updated: 10:54pm, 27 Jul 2020

China’s industrial giants saw their monthly profits grow for a second successive month in June, but remained in the red over the half of the year, due to the impact of the coronavirus.

Last month, profits of industrial firms saw a year-on-year increase of 11.5 per cent, from an increase of 6.0 per cent in May, new data from the National Bureau of Statistics (NBS) showed on Monday.

In the first six months of the year, however, profits fell by 12.8 per cent, with May and June representing the only months of growth in 2020.

China’s economy has been rumbling back to life in recent months, following a weeks-long shutdown in the early months of the year. Official data said the economy grew by 3.2 per cent in the second quarter, a dramatic turnaround on the minus 6.8 per cent reported in quarter one.

However, the official economic growth figure has been met with widespread scepticism, given that many parts of the economy are still reopening following the lockdown.

Total profits in for the first six months reached 2.51 trillion yuan (US$357.7 billion). In June alone, profits stood at 666.55 billion yuan.