China’s industrial profits down for the second month
December's industrial profits fell by 1.9% from a year earlier to ¥680.80 billion.
Profits at China’s industrial firms fell for the second straight month in December, down by 1.9% from a year earlier to ¥680.80 billion, data from the National Bureau of Statistics showed on Monday.
The decline last month follows November’s dip which was the first negative reading since December 2015.
For the full year of 2018, industrial profits rose by 10.3% to ¥6.64 trillion, compared to the 11.8% gain in the first 11 months of last year. The full year growth was also weaker than the robust pace of a 21.0% growth in 2017.
Weakened China growth expected to get support from government stimulus measures
China’s growth for last year slipped to the lowest annual rate since the 1990s while its 2018 fourth quarter growth slowed to the weakest since the global financial crisis, as domestic and foreign demand slackened amid the country’s trade conflict with the United States (US).
Chinese policy makers have been using targeted and limited stimulus measures to prop up its economy, refraining from those massive stimulus they had resorted to during past downturns which created high debt levels.
Policy makers are expected to continue to roll out more stimulus measures to boost the economy.
The head of the National Bureau of Statistics for China Ning Jizhe claims that the impact seen from the US-China trade conflict on China’s growth is still considered ‘manageable’.
Mr Ning said that China has ample room for macro policy support, and the country has the confidence and capacity to achieve a reasonable growth for this year.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
Please see important Research Disclaimer.
Start trading forex today
Trade the largest and most volatile financial market in the world.
- Spreads start at just 0.6 points on EUR/USD
- Analyse market movements with our essential selection of charts
- Speculate from a range of platforms, including on mobile
Live prices on most popular markets
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.