China’s industrial profits extend slump as economy weakens

News Snapshot:

Major banks have downgraded their growth forecasts for China this year to below the government’s target of around 5 per cent as recovery sputters on a worsening property slump, weak consumer spending and tumbling credit growth, prompting the authorities to slash interest and promise further support. State-owned enterprises saw earnings tumble 20.3 per cent in the first seven months of this year, foreign firms posted a 12.4 per cent decline and private-sector companies recorded a 10.7 per cent fall, a breakdown of the data showed. Profits dived for 28 of 41 major industrial sectors during the period, with the ferrous...