Industrial Enterprise Profits Rise 107.3% YoY in First Quarter: Chinese Central Bank Survey


A survey conducted by the People’s Bank of China (PBOC) points to a doubling in industrial enterprise profits in the first quarter, as the Chinese economy continues to recover from the impacts of the COVID-19 pandemic.

The survey of the 2021 first quarter financial reports of 5000 industrial enterprises in China conducted by PBOC found that total enterprise profits posted a 107.3% increase compared to the same period last year, and an average annual growth rate of 13.3% for the past two years.

The primary operations revenues of enterprises increased by 27.1%, for an average growth rate of 4.6% over the past two years, while primary operations profits grew 128.7% YoY, for an average growth rate of 18.5%.

The PBOC survey found that the solvency of industrial enterprises had improved, with a cash and short-term debt coverage ratio of 122% as of the end of March, 13.5 percentage points ahead of the reading for the same period last year, as well as 16.3 percentage points above the reading for the same period in 2019.