China's industrial profit down sharply due to Corona measures

Beijing (APA/Reuters) - Profits at China's industrial companies fell in April by the most in two years. According to official data from the statistics bureau, profits shrank 8.5 percent from a year earlier, down from a 12.2 percent gain in March. The slump is the sharpest since March 2020, with high commodity prices and chaos in supply chains caused by Corona restrictions squeezing profit margins and significantly disrupting factory activity.

The industrial sector was hit hard by the strict lockdown regulations. Industrial production in the commercial metropolis of Shanghai slumped 61.5 per cent in April. Nationwide, trade fell by 2.9 per cent. Profits at industrial firms rose 3.5 per cent year-on-year to 2.66 trillion yuan (370 billion euros) from January to April, slowing from an 8.5 per cent increase in the first three months, according to the statistics bureau. To help the economy get back on its feet, China had recently cut its benchmark interest rates for corporate and household loans and mortgages for the second month in a row.