China's industrial profits growth slows to 9% year on year in November
By Yao Nian
China's industrial profits in November grew by 9 percent compared with a year earlier and slower than the previous month, data from the National Bureau of Statistics (NBS) showed on Monday.
The growth slowed from the 24.6-percent gain reported in October, making the profits of China's major industrial firms to 805.96 billion yuan ($126.51 billion) in November.
From January to November, profits grew by 38 percent year on year to top 7.975 trillion yuan, slower than the 42.2-percent rise in the first 10 months of 2021, according to NBS. The growth has been slowing since the beginning of the year.
The country's efforts to cool soaring wholesale prices in November took cost pressures off downstream industries, but the curbs also weakened the contribution to overall profit growth from the mining and raw material sectors, according to Zhu Hong, a senior statistician at NBS.
"But cost pressures remain relatively large, and the improvement in profits for downstream sector needs to be further consolidated," Zhu said in a statement accompanying the data release.
In November, carmakers' profits fell by 6.4 percent year on year, while general equipment manufacturers saw theirs slip by 6.2 percent. Their profit declines narrowed 22.1 percentage points and 9.5 percentage points respectively, due to easing chip shortage and improving market demand, according to Zhu.
Meanwhile, 33 of the 41 industries saw increased profits, with IT and electronics manufacturing figures jumping by nearly 30 percent.
"The increase was [contributed] by sectors like clean energy, hi-tech and smart technology, which are better market oriented. They are the major driving force," said Liu Zhiqing, a senior research fellow of Chongyang Institute for Financial Studies at Renmin University of China.
Liu said the growth also lies in the sustainable macro policies that safeguards the development of the industrial sector.
This month, the People's Bank of China also cut the reserve requirement ratio for financial institutions and lowered the one-year benchmark lending rate to support economic growth.
(Yu Bokun and Wang Yizi contributed to this story.)