Another Chinese data, which adds into the doubts posed by investors, economists and analysts around the world that new wave of Chinese stimulus may not having the intended or past effects over economy. After sharp jump in March, industrial production, retail sales, manufacturing PMI, all have declined, exhibiting persistent weakness in the economy.
In March, profits at big firms rose 11.1% y/y, but that number sagged to 4.2% y/y in April. YTD profits have been 6.5% according to data from China’s National Bureau of Statistics (NBS). Biggest drag on profits has been state owned firms, which saw profits declined 7.8% y/y YTD. Profits at private firms’ profits rose 8.4% and 7.3% for foreign firms. Biggest drag in April has been electronics, electrical and auto.
An independent survey by Cheung Kong Graduate School of Business showed yesterday that Chinese industrial segment actually contracted in first quarter.
At G-7 meeting, world leaders have warned China that they may take retaliatory measures to curb its oversupply hitting global markets.
U.S. has already planned to pose 500% duties on Chinese Steel.
