A sharp retreat was observed in the profits of industrial companies, with the fact that there was not yet a complete recovery regarding the harsh Kovid measures in the industrial sector in China and the prices were on a downward trend.
According to the data of China's National Bureau of Statistics, a 22.9 percent decrease was observed in the profits of industrial companies in the first two months of the year compared to the same period of the previous year. The profits of foreign companies, on the other hand, decreased by 35.7 percent.
In the same period, the profits of private industrial companies decreased by 19.9 percent, while the rate of decline in public companies was 17.5 percent.
The profits of industrial companies declined by 4 percent in the whole of 2022, which passed under the shadow of harsh Kovid measures in the country.
Sun Xiao of the National Bureau of Statistics said in his assessment of the data that although industrial production is starting to recover, market demand has not fully recovered. Sun pointed out that the decrease in the revenues of the companies was more than the decrease in the costs.
SocGen China Economist Michelle Lam also stated that industrial companies have not yet reflected their costs in prices, as demand in the market has not yet fully recovered.