APAC Daily Chart Book

August 28, 2024

China

A dismal industrial profits and earnings release for September, with profits down 27.1% from a year earlier, following a 17.8% fall in August, while earnings fell 3.5% in the first nine months of the year compared to a 0.5% rise in the January-August period. The decline in profits is the worst seen since the pandemic downturn. SOEs were the main drag by enterprise type, with total profits declining 6.5% y/y on a YTD basis. Shareholding enterprises saw a 4.9% y/y YTD decline, while privately-held firms declined 0.6%. Foreign-invested firm profits rose 1.5%, highlighting the underperformance of the mainland economy. The utilities sector showed positive profit growth, but manufacturing and mining both showed declines on a YTD basis. Industrial profits have yet to reflect the raft of stimulus measures announced in the second half of September and early October.