Chinese industrial firms’ profits fell at a slower pace in April after higher sales in electronics and automobiles were reported. However, the country’s economy continues to struggle amid weak demand and activity.
Profits fell 4.3% year-on-year to 478.1 billion yuan ($67 billion) in April.
China’s economy is slowly recovering from the virus, but the impact of the crisis is expected to keep earnings low for most of 2020.
Industrial firms’ profits dropped 27.4% to 1.26 trillion yuan year-on-year for the first four months of 2020.
Automobiles, electrical machinery, special-purpose equipment, and electronics industries all contributed to higher profits in April. 23 out of 41 sectors recovered in profits last month.
However, poor market demand, low prices of industrial goods, and higher costs still weigh in on the negative profit outlook overall.
Beijing has raised tax and credit relief for affected companies since February but it resisted implementing big economic stimulus to avoid debt risks.
China has dropped its targeted GDP growth for 2020 for the first time in three decades.
State-owned industrial firms’ profits dropped 46% year-on-year for the first four months, while liabilities rose 6.2%. Private sector earnings fell 17.2% for the first four months.