Industrial enterprises in China have seen their profit levels post robust growth in the second quarter of 2020 despite the economic impacts of the outbreak of COVID-19.
Chinese industrial enterprises saw YoY profit growth of 4.8% in the second quarter of 2020, according to figures released by the National Bureau of Statistics (NBS) on 27 July.
In the month of June alone Chinese industrial “enterprises above designated size” posted total profits of 666.55 billion yuan, for YoY growth of 11.5%, and an acceleration of 5.5 percentage points compared to May.
“Enterprises above designated size” (规模以上企业) is a statistical term used in the People’s Republic of China to refer to industrial enterprises with annual main business revenue of 20 million yuan or more.
NBS said that the acceleration in profit growth was due to rapid rises in industrial production and sales, and a narrowing of price declines in industrial products.
NBS highlighted uncertainty in relation to the sustainable growth of industrial profits, however, given the ongoing spread of the COVID-19 pandemic globally.
Moody’s Expects Asset Quality of Chinese Banks to Be Hit by COVID-19 Before End of 2020
China Steps up Government Bond Issuance in 2020 to Deal with COVID-19 Impacts
China’s Municipal Banks Especially Susceptible to Rise in Non-performing Loans Post COVID-19: Fitch Ratings