China’s industrial corporate profits turned from negative to positive in the first October

China's industrial corporate profits turned from negative to positive in the first October

The National Bureau of Statistics of China released data today. In the first 10 months of this year, the profits of industrial enterprises above the designated size achieved an annual increase of 0.7%. This is the first time that the cumulative growth rate has changed from negative to positive this year. The equipment manufacturing industry has driven the most profitable growth.

From January to October this year, China’s industrial enterprises above the designated size achieved total profits of RMB 512.42 billion (approximately NT$2.254.6 billion), an increase of 0.7% over the same period last year.

Among the 41 major industrial sectors, the annual growth rate of total profits in 25 industries increased, and 16 industries decreased.

Affected by the 2019 coronavirus disease (COVID-19, Wuhan pneumonia) epidemic, the total profit of industrial enterprises decreased by 38.3% annually from January to February. After April, it began to climb significantly, and from January to September it has become an annual decrease of 2.4%.

According to the official website of the National Bureau of Statistics, the profit of the equipment manufacturing industry increased by 9.6% annually in the first 10 months of this year, which is the sector that contributed the most to the growth of industrial profits. Among them, the electronics industry has maintained double-digit growth since the cumulative profit growth rate in April turned positive. In addition, with the continued effectiveness of policies such as infrastructure investment and promotion of automobile consumption, the profits of the automobile manufacturing industry have recovered steadily.

In October, industrial enterprises above designated size achieved a total profit of 642.91 billion yuan, an annual increase of 28.2%, an increase of 18.1 percentage points from September. Zhu Hong, a senior statistician at the Department of Industry of the National Bureau of Statistics, said that this was mainly due to the low base period in the same period last year and the increase in investment income this month. After excluding the impact of short-term non-operating factors, profit growth in October was roughly the same as the previous month.