China's industrial profits extend decline to a fourth straight month, dropping 7.3% in November

China's industrial profits extended declines to a fourth straight month, dropping 7.3% in November from a year earlier, signaling that Beijing's stimulus measures have yet to meaningfully stem the slide in corporate earnings.

Profits slumped 10% year on year in October following a 27.1% plunge in September — their steepest drop since March 2020 according to Wind information. 

Industrial profits are a key indicator of the financial well-being of factories, utilities and mines in China. The earnings show how business balance sheets stack up in the aftermath of Beijing's steps aimed at stimulating the economy. 

Despite a slew of stimulus measures introduced since late September, recent economic data from China indicates that the world's second-largest economy continues to grapple with disinflation, driven by weak consumer demand and a prolonged downturn in the property market.

China's consumer inflation fell to a five-month low in November, while the country's exports and import data missed expectations. China's most recent retail sales data also disappointed, missing forecasts.

However, some parts of China's economy have shown signs of a recovery, with manufacturing activity expanding for two months in a row and hitting a five-month high in November.

Earlier this month, China's top officials committed at a key economic agenda-setting meeting to dial up monetary easing efforts, including lowering interest rates to support the ailing economy.

The World Bank on Thursday raised its forecast for China's economic growth in 2024 and 2025, reflecting the recent policy adjustments. It now expects China's GDP to grow 4.9% in 2024 compared with its previous projection of 4.8%, while in 2025, China's GDP is expected to expand by 4.5%, higher than the organization's prior forecast of 4.1%.

However, the World Bank cautioned that China's embattled property sector, alongside subdued household and business confidence, will remain headwinds to its growth.