How did China’s industrial giants perform in September?

Industrial profits at China’s biggest firms dropped by 2.4 per cent in first nine months, compared with the same period last year

In September, profits of large industrial firms increased 10.1 per cent compared with a year earlier

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In the first nine months of the year, industrial profits at China’s biggest firms fell by 2.4 per cent year on year, with May, June, July, August and September representing the only months of growth in 2020. Photo: Xinhua

Published: 10:08am, 27 Oct 2020Updated: 10:17pm, 27 Oct 2020

China’s industrial giants saw their monthly profits grow for a fifth consecutive month in September, while remaining negative over the first nine months of the year.

In September, profits of large industrial firms increased 10.1 per cent compared with a year earlier, though this was lower than the increase of 19.1 per cent in August, according to data from the National Bureau of Statistics (NBS).

In the first nine months of the year, industrial profits at China’s biggest firms fell by 2.4 per cent year on year, with May, June, July, August and September representing the only months of growth in 2020.

In September alone, profits stood at 612.81 billion yuan (US$91.4 billion).

China’s overall economy has continued its recovery from the impact of the coronavirus, with growth in the third quarter accelerating to 4.9 per cent.

“Despite weaker industrial profit growth in September, we believe China’s recovery is still largely on track and maintain our real [gross domestic product] growth forecast of 5.7 per cent year on year for quarter four, up from 4.9 per cent in quarter three. We believe Beijing will neither ease further nor start to tighten in the near term,” said analysts from Nomura.

In the first nine months of the year, 21 of the 41 industrial sectors saw profits rise year on year, more than the 16 during the January-August period.