China January - February Industrial profits -22.9% y/y (vs. prior -4.0%)

Huge ugly drop for profits data YTD.

January - February combined dropped 22.9% y/y.

For 2022 (January - December) the fall was 4%.

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Industrial revenue dropped 1.3% y/y in January - February. Costs did not fall as quickly, hence to cutting into profit margins.

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Industrial profit numbers from China cover firms with annual revenues of at least 20 million yuan (just under USD3mn) from their main operations.

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Combined January and February data are published for most Chinese economic indicators to flatten out distortions from the shifting timing of the Lunar New Year.