China's Industrial Profits Plunge: Fastest Drop in Over a Year Amid Cooling Demand

• China's industrial profits fell 13.1% year-on-year in November, marking the fastest decline in over a year and a second consecutive monthly contraction.
• The sharp drop, accelerating from October's 5.5% fall, highlights concerns over weak domestic demand, persistent deflation, and slowing economic recovery.
• Overall industrial profits for January-November rose only 0.1%, a significant slowdown from the 1.9% growth seen in the January-October period.
• Soft household consumption, falling investment, and factory-gate deflation are cited as key drags, despite some resilience in exports.
• Policymakers have not announced new stimulus, confident in meeting the 5% annual growth target, while economists expect only modest easing next year.

Why It Matters: China's industrial profits are rapidly declining due to weak demand, raising concerns for economic recovery.