Multiple factors affect the profits of industrial enterprises in April

The financial data of industrial enterprises released by the National Bureau of Statistics on the 27th show that in April, the total profits of Industrial Enterprises above the scale reached 515.39 billion yuan, down by 3.7% from the same period last year, and increased by 13.9% in March.

According to industry division, in the first four months, the total profits of 27 industries increased year on year, while 14 industries declined. Among them, oil exploitation increased by 19.7%, special equipment manufacturing increased by 17.9%, oil, coal and other fuel processing industry decreased by 50.2%, ferrous metal smelting and calendering industry decreased by 28.1%. Zhu Hong, a senior statistician in the Industry Department of the National Bureau of Statistics, explained that due to the reduction of VAT tax rate on April 1, the demand for some industrial products in April was released ahead of time in March. In addition, the base of the same period was relatively high. The profit of Industrial Enterprises above April dropped by 3.7% compared with the same period last year, which fluctuated considerably compared with March.

Reuters said that the Chinese government has stepped up its economic support measures this year, promising billions of dollars in additional tax cuts and infrastructure spending. The People's Bank of China also announced a three-stage reduction in the reserve requirement ratio of local banks to reduce the financing costs of small businesses. Liu Xuezhi, a senior researcher at the Financial Research Center of Bank of Communications, told the Global Times that the risk of weakening domestic and foreign demand has increased recently, and there is downward pressure on the economy. It is necessary to continue to adopt counter-cyclical macro-policies to ensure that the economy operates within a reasonable range. China's economy has a great depth of development and sufficient resilience. The effectiveness of counter-cyclical adjustment policy will continue to be released. The annual economic growth rate is expected to fall within the target range of 6% to 6.5%.