China Corporate Profits

Profits at China’s industrial firms edged up 0.1% yoy to CNY 6.63 trillion in January–November 2025, notably easing from a 1.9% increase in the first ten months but still marking a fourth consecutive gain since August. The sharp slowdown underscored weakening year-end demand and persistent cost pressures. State-owned enterprises saw profits slip (-1.6% vs flat previously), while private firms inched lower (-0.1% vs 0.9%). Foreign-invested firms, including those backed by Hong Kong, Macao, and Taiwan, also lost momentum (2.4% vs 3.5%). By sector, computers and communications (15.0%), utilities (11.8%), non-ferrous smelting (11.1%), autos (7.5%), agriculture (4.8%), general manufacturing (4.8%), special equipment (4.6%), and electrical machinery (4.2%) led gains. Losses were steep in coal mining (-47.3%), oil and gas (-13.6%), textiles (-8.2%), and chemicals (-6.9%), though fuel processing narrowed declines. In November alone, profits fell 13.1% yoy, deepening from October’s 5.5% drop.