Profits earned by China's largest industrial firms dropped by 3.4% from a year earlier to CNY 1.813 trillion in the first four months of 2019, compared to a 3.3% fall in the January to March period. Profits at state-owned enterprises declined 9.7% while those at private firms grew 4.1%. Among the 41 industries surveyed, 14 sectors saw year-on-year profit falls including chemical raw materials (-16%), coal mining (-16.5%), non-ferrous metal mining (-19.5%), ferrous metal smelting and rolling (-28.1%), and computer, communications and other electronic equipment (-15.3%). In contrast, there were rises in profits for oil, coal and gas extraction (19.7%); pharmaceuticals (9.7%), and power supply (12.3%). Regarding April only, industrial profits fell 3.7% year-on-year to CNY 515.4 billion, swinging from a 13.9% surge in March, due to the timing of the government's planned cuts in value-added tax that kicked in early April. Also, a high base of comparison last year was a factor pointed. Corporate Profits in China averaged 1629082.90 CNY Million from 1996 until 2019, reaching an all time high of 7518710 CNY Million in December of 2017 and a record low of 1617 CNY Million in February of 1998.
Corporate Profits in China is expected to be 3200000.00 CNY Million by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Corporate Profits in China to stand at 1200000.00 in 12 months time. In the long-term, the China Total Industrial Profits is projected to trend around 6950000.00 CNY Million in 2020, according to our econometric models.