Analysis: Four Takeaways From China’s Declining Industrial Profits

The combined profits of major industrial companies in China continued to plunge in the January-April period, down 20.6% year-on-year, although the rate of decline narrowed by 0.8 percentage points compared to the January-March period.

At present, four key trends have emerged in the sector.

1. The narrower decline in industrial profits was mainly driven by accelerated growth in industrial production, but pricing and costs continued to weigh on overall profitability.