Industrial profits in China decline for the fourth month in a row, falling 7.3% in November.

China's Industrial Profits extended declines for a fourth consecutive month, falling 7.3% in November compared to the previous year, signaling that Beijing's stimulus measures have not yet significantly stemmed the decline in corporate profits.

However, the decline in profits was smaller than the declines in previous months. They decreased by 10% year on year in October after a In September, a decline of 27.1%. — according to Wind, this is the largest decline since March 2020.

There is “no surprise” about continued lower profits for industrial companies, especially amid disinflation in China, said Suan Teck Kin, head of research at UOB.

But she added that “the worst is over” for the Chinese economy, given a series of stimulus programs. “I think we've basically already bottomed out and now we're heading up,” he told CNBC's “Street Signs Asia.”

Industrial profits are a key indicator of the financial health of China's factories, utilities and mines. The results show how corporate balance sheets are shaping up in the wake of Beijing's moves to stimulate the economy.

In the January-November period, industrial profits in China fell 4.7% compared to the same period last year, compared with a 4.3% year-on-year decline in the first 10 months of 2024.

Industrial companies with foreign investment, including those in Hong Kong, Macau and Taiwan, saw profits fall 0.8% from January to November compared with last year.

In the first 11 months of the year, mining profits fell 13.2% year-on-year and manufacturing profits fell 4.6%. Meanwhile, the utilities industry – electricity, heat, gas and water supply – saw profits increase by 10.9% year-on-year in the period from January to November.

“Thanks to the effective implementation of existing policies, the accelerated introduction of a package of gradual policies, and the sustained effects of policy combination, industrial production above the target has steadily increased,” said Yu Weining, a statistician at National Statistical Office, according to Google's translation of her comments into Chinese.

Despite the introduction of a number of stimulus measures from the end of SeptemberThe latest economic data from China shows that the world's second-largest economy continues to struggle with disinflation resulting from weak consumer demand and a prolonged deterioration in the real estate market.

Consumer inflation in China fell to its lowest level in five months in November, however data on the country's exports and imports disappointed expectations. China the latest retail sales data also disappointedmissing forecasts.

However, some parts of China's economy have shown signs of recovery, with manufacturing activity picking up two months in a row and reached a five-month high in November.

Earlier this month, top Chinese officials pledged at a key meeting setting the economic agenda step up efforts to ease monetary policy, including lowering interest rates, to support the struggling economy.

The The World Bank raised its forecast for China's economic growth in 2013 on Thursday 2024 and 2025, reflecting recent policy adjustments. It now expects China's GDP to grow by 4.9% in 2024, up from its previous projection of 4.8%, while China's GDP is expected to grow by 4.5% in 2025, higher than the organization's previous forecast of 4 .1%.

However, the World Bank warned that China's distressed real estate sector, coupled with weak household and business sentiment, would continue to be a drag on its growth.