According to data released by the National Bureau of Statistics (NBS) on Sunday, major industrial enterprises in China reported a combined profit of 5.23 trillion yuan ($735.41 billion) for the January-September period, marking a 3.5 per cent decrease compared to the previous year.
Despite the decline, high-tech manufacturing industries demonstrated rapid growth, showing strong resilience within the industrial sector.
Yu Weining, a statistician at the NBS in China, highlighted that the performance of these industries underscores the adaptability of China’s industrial economy.
Yu noted that multiple factors caused the decline in industrial profit growth, including a significant increase in the previous year’s base figures since August, insufficient effective demand, and a drop in industrial product prices.
In September alone, the profits of major industrial enterprises saw a steep 27.1 per cent year-on-year decline.
Nevertheless, there was some positive momentum. From January to September, the total profit increased by 575.43 billion yuan compared to the January-August period, thanks largely to robust production in high-tech manufacturing, which achieved a 6.3 per cent year-on-year increase.
This growth rate, 9.8 percentage points above the average for major industrial enterprises, added 1.1 percentage points to overall profit growth, significantly supporting the sector.
Consumer goods manufacturing also made gains, with profits up by 2.4 per cent year-on-year, contributing an additional 0.5 percentage points to the overall profit growth.
This improvement aligns with ongoing efforts to stimulate domestic demand, promote consumption, and stabilize international market demand.
Yu expressed optimism, noting that the resilience of new growth drivers is apparent even amid a slowing industrial profit growth rate.
As expectations stabilize and business confidence increases, industrial profits are expected to gradually recover.
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