China’s industrial profits fell for a fourth consecutive month, falling 7.3 percent in November.

China’s industrial profits The expansion declined for the fourth consecutive month, down 7.3 percent In November from a year ago, there are signs that Beijing’s stimulus measures have meaningfully stemmed the decline in corporate earnings.

However, the decline in profits was less than the decline seen in previous months. He There was a decrease of 10% year-on-year. After one in October 27.1% decline in September – Their steepest decline since March 2020, according to Wind Information.

Suan Teck Kin, head of research at UOB, said it was “no surprise” when industrial companies continued to face low profits, especially in China’s inflationary environment.

However, he added that the “worst is over” for China’s economy given the slate of stimulus. “I think it’s basically just down, and now it’s on the way up,” he told CNBC’s “Street Signs Asia.”

Industrial profitability is an important indicator of the financial well-being of factories, utilities and mines in China. The earnings show how Beijing’s measures to shore up the business balance sheet are aimed at stimulating the economy.

Between January and November, China’s industrial profits fell 4.7 percent from the same period last year, while in the first 10 months of 2024 they fell 4.3 percent year-on-year.

Foreign-invested industrial firms, including those from Hong Kong, Macau and Taiwan, saw profits fall 0.8 percent from January to November from a year earlier.

Mining industry profits fell 13.2% year-on-year in the first 11 months of the year, while manufacturing profits fell 4.6%. However, the utilities industry – electricity, heat, gas and water supply – saw profits rise 10.9% year-on-year between January and November.

“With the effective implementation of existing policies, the rapid introduction of a package of additional policies, and the sustained effect of the policy mix, industrial production continued to rise above the target size,” said Yu Wenning, statistician. National Bureau of Statistics, According to a Google translation of his comments in Chinese.

Despite the introduction of several stimulus measures From the end of SeptemberRecent economic data from China shows that the world’s second-largest economy is suffering from disinflation due to weak consumer demand and a prolonged downturn in the property market.

Consumer inflation in China fell to a five-month low In November, while Export and import data of the country Unexpected China The most recent retail sales figures also disappointedMissing prophecy.

However, parts of China’s economy have shown signs of recovery, including manufacturing activity Two months in a row and hit a five-month high in November.

Earlier this month, top Chinese officials committed to it. An important economic agenda-setting meeting Dialing back monetary easing efforts, including interest rate cuts, to support the ailing economy.

gave The World Bank raised China’s economic growth forecast on Thursday. 2024 and 2025, reflecting recent policy adjustments. It now expects China’s GDP to grow by 4.9 percent in 2024, up from its previous estimate of 4.8 percent, while in 2025, China’s GDP is expected to grow by 4.5 percent, up from the organization’s 4.1 percent. is more than predicted.

However, the World Bank has warned that China’s troubled property sector, along with declining household and business confidence, will remain headwinds to its growth.