Chinese Industrial Profits Sink Further as COVID Disruptions Linger
USD/CNY
+0.33%
Add to/Remove from Watchlist
Add to Watchlist
Add Position
Position added successfully to:
Please name your holdings portfolio
Type:
BUY
SELL
Date:
Amount:
Price
Point Value:
Leverage:
1:1
1:10
1:25
1:50
1:100
1:200
1:400
1:500
1:1000
Commission:
Create New Watchlist
Create
Create a new holdings portfolio
Add
Create
+ Add another position
Close
USD/CNH
+0.29%
Add to/Remove from Watchlist
Add to Watchlist
Add Position
Position added successfully to:
Please name your holdings portfolio
Type:
BUY
SELL
Date:
Amount:
Price
Point Value:
Leverage:
1:1
1:10
1:25
1:50
1:100
1:200
1:400
1:500
1:1000
Commission:
Create New Watchlist
Create
Create a new holdings portfolio
Add
Create
+ Add another position
Close
By Ambar Warrick
Investing.com— Chinese industrial profits continued their decline in January to September, data showed on Thursday, amid continued disruptions from COVID lockdowns and fears of new U.S.-led headwinds to the technology sector.
Industrial profits sank 2.3% between January and September, data from the National Bureau of Statistics showed. The figure was weaker than August’s reading of 2.1%, and is a third straight month of declines for the sector.
China’s industrial sector slowed substantially this year as lockdowns in major industrial hubs, such as Shanghai, ground economic activity to a halt. While the economy staged a recovery in the third quarter, helped largely by easing lockdowns, it still remained well below pre-COVID levels.
The Chinese economy also missed the People’s Bank of China’s growth expectations for the third quarter.
Manufacturing activity barely managed to expand in recent months, with factories facing a slowdown in both local and domestic demand.
China’s massive electronics manufacturing industry now faces new challenges after the United States blocked the export of U.S.-made semiconductors to the country. The move is expected to severely dent China’s chipmaking ambitions, and is also expected to dent production.
A recent resurgence in COVID restrictions has also raised concerns over new lockdowns, particularly in major industrial hubs.
China’s strict zero-COVID policy is at the heart of its economic woes this year, as it ground activity to a halt and also soured investor appetite for the country. President Xi Jinping signaled during the recent Communist Party Congress that the country has no plans to scale back the policy.
A brewing property crisis has also weighed heavily on local demand, as several major real estate developers faced shrinking margins and a severe cash crunch due to a slump in house prices.
Still, the government has rolled out a slew of stimulus measures to support growth. Infrastructure spending is expected to ramp up in the coming months.
The Chinese yuan fell 0.1% after Thursday’s data.