China's Industrial Profits Plunge Sparks Economic Stimulus

China's industrial profits experienced a significant decline in September, dropping by 27.1% from the previous year. Policymakers are responding with stimulus measures aimed at revitalizing economic growth. Despite these efforts, various economic sectors continue to face challenges, including weakened demand and falling producer prices.

China experienced a sharp decline in industrial profits in September, marking the steepest monthly drop this year, as reported by official data on Sunday.

Profits plummeted by 27.1% compared to the previous year, with a cumulative drop of 3.5% in the first nine months of 2023, prompting policymakers to enhance stimulus measures.

The government's focus is now on injecting fiscal stimulus to aid the economy's recovery and ensure it remains on track to meet growth targets, amid mounting concerns over deflationary pressures and sluggish demand.

(With inputs from agencies.)