China Industrial Profits Rebound with 10.2% Growth in Early 2022

• China's industrial profits grew 10.2% in January-February 2022 compared to a year earlier, rebounding from a 2.3% decline in 2023 • The profit growth signals stabilisation and recovery in China's economy after bottoming out last year • State-owned firms saw a small 0.5% profit rise, while foreign and private firms saw much stronger growth • But global demand outlook, commodity price changes, supply chain issues could dampen further profit gains
• Policymakers still have tools to sustain momentum if weakness persists, like reserve requirement ratio cuts