Profits at China's industrial firms grew in March, rebounding from four mon...
BEIJING - Profits at China’s industrial firms grew in March, rebounding from four months of contraction, adding to optimism the world’s second-largest economy may be starting to stabilise.
Beijing and Washington appear to be edging towards a trade deal, but investors are concerned that a sharp slowdown in China will have repercussions on the wider global economy. The pick-up in industrial profits eased concerns about the slowing momentum in China’s economy as it has been cooling for the past year, weighed down by a bitter trade dispute with the United States, as well as a campaign to curb debt risks that has led to higher financing costs for companies.
However, there are still concerns about whether the turnarounds will be sustainable, as gains could have been due to seasonal factors - such as the resumption in constructions after the Lunar New Year - instead of a rebound in broader demand.
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