China's Industrial Profit Growth Slowed in April

China's industrial profit growth slowed in April, official data showed Thursday, as the favorable effect of a lower base last year gradually waned.

China's industrial profit grew 57% on year in April, down from March's 92.3% growth, according to the National Bureau of Statistics. Compared with the same month in 2019 before the economy was hit by the coronavirus, industrial profit rose 50.2% in April, 10.7 percentage points higher than March, the bureau said.

Upstream mining companies and raw-material manufacturers witnessed rapid profit growth in April, thanks to soaring commodity prices and recovering demand, it said.

Profits of pharmaceutical manufacturers in China were boosted by vaccine and Covid test equipment demand from overseas and accelerated from the pace in the first quarter.

Profit decline in textile, printing and apparel manufacturers narrowed in April as these sectors gradually recovered, the statistics bureau said.

The improved profitability also helped industrial firms to reduce their debt ratio to 56.3% at the end of April, down 0.4 percentage points from a year earlier.

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  05-26-21 2237ET
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