Industrial profit groups in China recorded the biggest decline in two years in April, indicating the impact of the latest COVID-19 lockdowns on the economy and corporations. MCHI is down 0.22%, while BABA is down 2.70%.
- Chinese industrial profits fell by 8.5% in April, marking the biggest decline since March 2020 during the onset of the COVID-19 pandemic.
- The decline puts pressure on the government, which has continued to maintain its zero-COVID policies seeking to curb infections.
- The figures come after official data released last week revealed a fall in overall activity during the closure of Shanghai, which serves as a major financial hub.
- Retail sales declined by 11%, along with the drop in industrial production. The unemployment rate also dropped to a two-year low of 6.1%.
- National Bureau of Statistics Senior Statistician Zhu Hong said the outbreak made a “large impact” on industrial production and operation.