Chinese industrial companies profits fell

Tweet

The Chinese industrial companies profits fell by the largest value in two years, highlighting the need for more flexible monetary conditions amid slowing Asian economy. In October the total profits of Chinese industrial companies declined by 2.1% yoy. For comparison - in September, their profit rose with 0.4%. The October the decline was the largest since August 2012. The Chinese Central Bank, which last week lowered interest rates for the first time in two years, refrain from sales of repurchase agreements today. This happens for the first time since July, thereby loosen monetary policy further.

Amid the housing collapse, overproduction and deflation production China is about to record the slowest annual growth since 1990. The economic slowdown deepened in October, judging by the latest figures published on 13th November 2014. The industrial production rose only by 7.7% yoy. The growth was the second weakest since 2009. Moreover, the investments in fixed assets grew by the slowest pace since 2001, looking at the data for the period from January to October. The retail sales this month also clashed with analysts’ expectations.