China’s industrial profits YTD rose 0.8% y/y in Q1, reversing the 0.3% decline in the first two months, but face ongoing pressure from U.S. tariffs
- for March month alone profits were +2.6% y/y
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Consumer goods sectors like wearable devices and kitchen appliances saw strong profit growth due to government stimulus.
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External risks (intensifying trade disruption), deflationary pressures, and weak domestic demand continue to threaten corporate earnings despite policy support pledges.
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State-owned and private firms posted slight profit declines, while foreign firms recorded a modest gain.
On Friday the Communist Party’s Politburo vowed new support measures, including monetary tools and financing initiatives aimed at boosting innovation, consumption, and trade …. strengthen support for the real economy
We should get more info on that today:
This article was written by Eamonn Sheridan at www.forexlive.com.