The profits of Chinese industrial companies grew in October for the sixth month in a row and at the highest rate since the beginning of 2017, indicating the improvement of the industrial sector that suffered due to the Corona pandemic.
Profits increased by 28.2% year on year in October to reach 642.91 billion yuan (equivalent to 97.79 billion dollars), after rising only 10.1% in September last year, and the activity of the Chinese economy is expected to return to its usual levels for the coming year.
The Chinese industrial sector witnessed a remarkable improvement after the Corona pandemic crisis, and this was helped by the return of demand for China’s exports, as during the period between January and October, profits of industrial companies increased by 0.7% on an annual basis after declining by 2.4% in the months The first nine of the year 2020 compared to the same period last year.
The growth was mainly in the equipment and electronic sectors, while the auto sector witnessed a steady improvement in profits, and the percentage of industrial companies’ receivables rose by 6.8% on an annual basis at the end of October compared to an increase of only 6.6% at the end of September.
Revenues of Chinese government-affiliated industrial companies fell 7.5% year-on-year for the first 10 months, compared to a 14.3% decline in the January-September period.
The growth of the private sector increased by 1.1% year-on-year between January and October, compared to a decline of 0.5% in the first nine months, as these statistics cover only large companies with revenues from their core industries more than 20 million yuan.