China Industrial Enterprises Total Profits were released on Saturday, from the National Bureau of Statistics.
- Profits showed an increase of 5.3% in March from a year earlier
- Down from a 17.2 percent pace in the first two months
The slower profit growth could be suggesting China’s key industries are still struggling with weak demand and overcapacity:
“Profits are only growing in line with sales and with problems of overcapacity and the sluggish global picture, it doesn’t bode well for a speedy return to higher profit margins,” said Louis Kuijs, chief China economist at Royal Bank of Scotland Group Plc in Hong Kong. “Heavy industries especially still face destocking and higher costs, but if there is a silver lining, industries catering to the consumer, like textiles, food and beverages, seem to be doing much better.”
