FX.co ★ China Industrial Profits Drop Slightly in Jan-Feb

In the first two months of 2025, profits generated by China's industrial companies decreased by 0.3% year-on-year, totaling CNY 910.99 billion. This recent downturn comes after a 3.3% decline in 2024, despite indications that China's economy is regaining strength due to a series of government stimulus initiatives introduced since last September. Profits for state-owned enterprises saw a return to growth, with an increase of 2.1% following last year's 4.6% drop. Conversely, the private sector experienced a decline in profits by 9.0%, after a modest rise of 0.5% previously. Looking at specific industries, there were notable declines in profits for coal mining (-47.3%), non-metallic minerals (-37.8%), computers and communications (-9.4%), electrical machinery (-2.4%), chemicals (-1.5%), and oil and gas extraction (-1.1%). On the other hand, there were profit increases in several sectors: agriculture experienced a significant rise (37.8%), non-ferrous metal smelting (20.5%), heat production (13.5%), automotive industry (11.7%), general manufacturing (6.0%), special equipment (5.9%), and textiles (5.7%).