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China's economic recovery
EconomyChina Economy

Hopes for stimulus roll-out on China’s horizon after industrial profits dive in September

All eyes are on November’s NPC Standing Committee meeting for more details of support for the economy

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Industrial profits fell by more than a quarter in September although there were signs of resilience in hi-tech sectors. Photo: AFP
Luna Sunin Beijing
China has reported its steepest fall in industrial profits in more than three years, as expectations mount that Beijing will double down on stimulus to boost growth and confidence in the economy.

According to data released by the National Bureau of Statistics (NBS) on Sunday, profits for major industrial firms – those with annual revenues at least 20 million yuan (US$2.8 million) – fell by 27.1 per cent in September from a year earlier.

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It was the biggest percentage point drop since March 2020 when the country was hit hardest by the pandemic.

Over the first nine months of the year, industrial profits dipped by 3.5 per cent year on year to 5.23 trillion yuan, snapping eight months of increases from January, the official data showed.

The decline comes as the world’s second-biggest economy grapples with persistent deflationary pressure and subdued demand.
To help shore up the economy, Beijing launched a policy “bazooka” in late September – an effort that included key lending and mortgage rate cuts.
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It also included the issuance of ultra-long-term special bonds to help major state-owned banks and the real estate sector, incentives to boost consumer spending, and efforts to mitigate local debt risks.

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