March profit of Chinese industrial enterprises collapsed by 34.9%

US, WASHINGTON (ORDO NEWS) — The Chinese National Bureau of Statistics released profit data for Chinese industrial companies in March 2020. Despite the fact that earlier Beijing reported an active restoration of enterprises, the decline was not much lower than in January-February of this year, amounting to 34.9% after 38.3%.

Then the decline was the sharpest since at least 2010.

March profit margin totaled 370.66 billion yuan ($ 52.43 billion). In January-March of this year, the profit of industrial enterprises on an annualized basis fell by 36.7% to 781.45 billion yuan.

At the same time, at the end of March, liabilities of industrial enterprises grew by 5.4% year on year against 5.3% at the end of February.

Negative statistics on industrial enterprises demonstrate how severe the Chinese economy received as a result of the coronavirus pandemic. The restrictions imposed by the Celestial Empire to combat the spread of the disease led to the closure of many enterprises in February this year, as well as a sharp drop in demand. As a result, the decline in China’s GDP in the first three months of this year amounted to 6.8%.

The data on the profits of industrial enterprises, published by the National Bureau of Statistics, show only the results of large companies whose income from operations exceeds 20 million yuan per year. Wider data on industrial enterprises are provided only by private analytical firms. Relevant research is being carried out, in particular, by Caixin Media Holding. As a rule, his polls show a worse picture than official services.

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