Profits at Chinese industrial companies have risen at their fastest pace in more than 18 months, in a sign that stimulus measures are helping to cushion the slowdown in China’s manufacturing sector.
China’s economy grew at its weakest pace in 25 years last year, and analysts expect a further slowdown this year. The factory sector, the main engine of growth over the past two decades, has been the hardest hit, as rampant excess capacity and weak demand have led to price declines.
Official data released on Sunday showed industrial profits rose 4.8 per cent in January and February compared to a year earlier and in contrast to a fall of 4.7 per cent in December. The rise ends a seven-month string of negative growth and marks the fastest growth since July 2014.