China’s industrial profits up 10.2% in first 2m

China’s industrial profits surged 10.2 per cent in the first two months of the year, rebounding from a 2.3 per cent decline in 2023, Reuters reported on Wednesday, citing National Bureau of Statistics data.

This growth signals a gradual economic recovery, supported by upbeat indicators. However, challenges persist in the property market, impacting overall gains, according to the report.

State-owned firms saw a 0.5 per cent profit increase, foreign firms a 31.2 per cent gain, and private-sector companies a 12.7 per cent rise.

Analysts anticipate continued profit growth but caution against global demand uncertainties, energy price fluctuations, and supply chain disruptions.

Despite positive signs, concerns remain about China’s domestic demand and economic weakness. Policy options, including potential cuts in banks’ reserve requirement ratios, are being considered to sustain momentum.