China: Industrial profits surged 13.9% y/y - TDS

Analysts at TD Securities note that China’s industrial profits data released on Saturday revealed a 13.9% y/y increase, its biggest gain since July 2018.

Key Quotes

“Profits were still down -3.3% YTD y/y in March, following a -14% y/y decline in Feb. The auto sector in particular registered a sharp improvement in March. Profits growth was based on an encouraging 7.2% YTD increase in sales.”

“The data reveals yet more signs of stabilisation in China’s economy in the wake of a raft of decent March data and will offer further relief to its markets after China stocks recorded their worst week in 6-months last week.”