A Chinese flag is seen in the Lujiazui Financial District in Pudong, Shanghai, China, on September 18, 2023.
Raul Ariano | Bloomberg | Getty Images
China’s industrial profits grew faster in June, official data showed on Saturday, even as companies grapple with a shaky economic recovery and falling consumer confidence.
According to data from the National Bureau of Statistics, profits increased by 3.6% annually last month after an annual increase of 0.7% in May, while profits in the first half of the year increased by 3.5% annually, accelerating from the 3.4% growth rate from January to May. .
Robust data and economic slowdown, Due to the sluggish job market and long-term sluggish real estate market, the performance of the consumer sector was pessimistic, and second-quarter results fell short of expectations.
Of the more than 10 mainland listed alcoholic beverage companies that have released profit forecasts for the first half of the year, about half expect losses in the first half.
However, despite rising trade tensions with the West, optical transceiver companies Zhongji InnoLight and Suzhou TFC Optical Communications expect first-half earnings to rise severalfold as the two suppliers to the U.S. chip giant Nvidia Become the big winner in the development of global artificial intelligence.
China is trying to provide larger monetary stimulus to prop up its fragile economy, surprising markets for the second time on Thursday. unplanned Loan operations at extremely low interest rates. Just a few days ago, the authorities lowered a number of benchmark lending rates following a meeting of top leaders, which also formulated other major reform plans.
The country’s national planner and finance ministry announced plan About 300 billion yuan of ultra-long-term special government bond funds will be arranged on Thursday to strengthen national equipment upgrades and consumer goods trade-in activities.
Data from the National Bureau of Statistics show that in the first half of the year, profits of state-owned enterprises increased by 0.3%, foreign-invested enterprises increased by 11%, and private enterprises increased by 6.8%.
The industrial profit data covers companies whose main business annual revenue is at least 20 million yuan ($2.75 million).
