China's Industrial Profits Plunge 13.1% in Nov, Sharpest Drop in a Year

• China's industrial profits fell 13.1% year-on-year in November, marking the sharpest decline in a year and the second consecutive monthly drop.
• Weak domestic demand, declining investment, and persistent deflation are cited as primary reasons for the significant profit slump.
• Overall industrial profits for Jan-Nov grew only 0.1%, a sharp slowdown from the 1.9% recorded for Jan-Oct, indicating weakening industrial activity.
• While manufacturing (aerospace, electronics) and utility sectors showed growth, mining companies, particularly coal-related, experienced double-digit declines.
• The sharp decline raises concerns about future investment and hiring, though Beijing remains confident in achieving its 5% annual growth target.

Why It Matters: China's industrial profits hit a one-year low, signaling economic recovery challenges amid weak demand.