Profits of Chinese industrial companies fell by 2.3% in 2023
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In 2023, profits of Chinese industrial companies fell by 2.3%, amounting to 7.7 trillion yuan ($1.1 trillion). Such data yesterday, January 27, published National Bureau of Statistics of the People’s Republic of China. This figure has been declining for the second year in a row – in 2022, when lockdowns and other Covid-19 measures were actively introduced in China, industrial profit decreased by 4%.
At the same time, by the end of 2023, results began to improve: in November, the profits of industrial companies grew by 29.5%, in December – by 16.8%. Industrial profits of foreign companies fell especially sharply over the year – by 6.7%. There was also a decrease in state-owned industrial companies – by 3.4%, while the profits of Chinese private industrial companies increased by 2%.
According to Hwabao Trust economist Ni Wen, the decline in profits for the year was due, in part, to falling selling prices due to reduced demand and a corresponding excess industrial capacity. In his opinion, this year prices will recover and profits of industrial companies will increase by 5–6%.
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