China Industrial Enterprises total profits collapsed in October to CNY427.5bn from CNY575.6bn in September – a 9.9% YoY plunge, the biggest drop on record.
In fact, China’s Industrial sector has seen annual declines in its profits for 4 of the last 5 months.
“Extended deflation in producer prices is likely to keep downward pressure on profits,” Bloomberg Economist David Qu said in a note before the data.
“Looking ahead, the low base will continue to support the year-on-year comparisons.”
Additionally, Industrial firms’ liabilities increased 4.9% from a year earlier to 66.74 trillion yuan at end-October, compared with a 5.4% increase at end-September.