China's Industrial Profits Continue to Rise with Government Support
China's industrial profits continued to rise for a second consecutive month in September, with a year-on-year increase of 11.9%, following a surprise gain of 17.2% in August. The recovery in profits is attributed to supportive policy measures and stronger industrial and consumption activity. Although profits for the first nine months of the year were down 9% compared to the previous year, the decline narrowed from the first eight months. The improvement in industrial profits is expected to continue in the coming months, driven by domestic macro pump-priming. However, the property sector's weakness remains a drag on the economy and corporate earnings. State-owned firms saw the biggest decline in earnings, while private-sector companies recorded a smaller slide.