China's Industrial Profits Slow to 0.5% Growth Amid Economic Challenges

August sees a 17.8% plunge in profits, prompting Beijing to implement new stimulus measures to bolster the economy.

China's major industrial firms' profits grew by 0.5% year-on-year from January to August 2024, down from a 3.6% increase in the first seven months.
In August alone, industrial profits dropped by 17.8% compared to the same month last year, reversing a 4.1% gain in July.
The slowdown is attributed to weak market demand, extreme weather conditions, and a high base effect from the previous year.
Beijing has responded with new stimulus measures, including cutting the reserve requirement ratio by 50 basis points and lowering the 7-day reverse repurchase rate.
Economic indicators such as industrial activity, retail sales, and urban investment have underperformed, raising concerns about missing the annual GDP target of around 5%.