Profits in Chinese industrial companies fell during the first two months of the year to their lowest levels in a decade, as they were particularly affected by the manufacturing and energy sectors.
Data from the National Bureau of Statistics showed that profits of industrial companies in China fell by 38.3% in the first two months of 2020 to 410.7 billion yuan, down from 6.3% in December last year, which is considered the lowest reading for the index since 2010.
Industrial production and sales declined sharply due to the corona epidemic and labor costs continued to put pressure on companies, according to the Census Bureau statement.
During the first two months of the year, profits for state-owned industrial companies fell by 32.9% a year, while private sector profits slipped by 36.6%.
However, industrial profits are expected to improve as the impact of the epidemic fades and production lines return to work, but the increased risk of a global recession will affect the recovery.
As of 11:20 GMT, the
offshore yuan was 0.32 percent lower versus the U.S. dollar at 7.1038,
while the onshore yuan traded 0.22 percent down at 7.0883.