China’s Industrial Profits Cools to a 9% y/y Growth in November

Source: NBS 

China recorded a 9% increase in industrial profits in November, which hit 805.96 billion yuan or $126.54 billion, dropping from a gain of 24.6% the previous month. CSI 300 is down -0.041%, USDCNY is up +0.07%. 

• The slow increase in industrial profits reflected a decline in prices of some raw materials amid slowing domestic demand and a weak property sector.
• In the January to November period, profits of China’s industrial firms grew by 38% to reach 7.98 trillion yuan, below the growth of 42.2% in the same period to October.
• NBS senior statistician Zhu Hong says Beijing’s moves to contain material costs relieved some downstream firms at the cost of lower margins among raw material producers. He says cost pressures are still a challenge in the downstream sector.