>> LIVE FROM SINGAPORE, THIS IS INSIGHT WHERE WE DIVE DEEPER INTO THE STORIES THAT MATTER WITH CRUCIAL CONTEXT. CHINA’S INDUSTRIAL PROFITS SAGGED IN AUGUST SUGGESTING A NATIONAL CAMPAIGN TO TACKLE OVERCAPACITY AND COMPETITION IS PAYING OFF. AFTER YEARS OF AVERSION GLOBAL MONEY MANAGERS ARE VENTURING BACK INTO CHINA WITH OFFICIAL DATA SHOWING FOREIGN INFLOWS RISING ACROSS ASSET CLASSES.AND WITH FOREIGN FUNDS STILL UNDER WAY AND MAINLAND EQUITIES COULD THE RALLIES HAVE MORE TO RUN. AND INDIA BEATS PAKISTAN TO ...

Summary of Key Points from the Conference Call Industry Overview - The report focuses on the industrial sector in China, highlighting significant changes in industrial profits and revenues for August compared to July. Core Insights and Arguments 1. **Industrial Profits Growth**: - China's industrial profits increased by **18.8% year-over-year (yoy)** in August, a notable recovery from a **-1.1% yoy** decline in July. Sequentially, profits rose by **8.0% non-annualized** after seasonal adjustment, compared to a **3.7% increase** in July [6][2][1]. 2. **Revenue Performance**: - Industrial revenue saw a **2.3% yoy** increase in August, up from **1.0% yoy** in July. However, sequentially, revenue remained flat in August, contrasting with a **-0.3%** decline in July [6][2][1]. 3. **Sector Contributions**: - Downstream industries experienced a **15.8% yoy** profit increase in August, while upstream industries saw a **37.5% yoy** profit increase. The broad equipment manufacturing sector contributed **2.8 percentage points (pp)** to the yoy growth of industrial profits in the first eight months of the year, with rail/ship/spacecraft and electrical machinery leading the growth [6][1]. 4. **Profit Margins**: - Overall profit margins improved in August on a **12-month average basis**, with both upstream and downstream profit margins showing positive trends [6][1]. 5. **Government Influence**: - The report indicates that the raw material manufacturing sector contributed **2.5pp** to profit growth, reflecting higher domestic producer prices, particularly in coal and steel, and hints at the government's "anti-involution" efforts [6][1]. Additional Important Information - The report emphasizes that investors should consider this data as one of many factors in their investment decisions, suggesting a cautious approach to interpreting the findings [4][6]. - The data is sourced from the National Bureau of Statistics (NBS) and Goldman Sachs Global Investment Research, ensuring credibility and reliability [7][9]. This summary encapsulates the essential insights from the conference call regarding the industrial sector's performance in China, highlighting both the recovery in profits and the stability in revenue, along with the contributions from various sectors and the influence of government policies.

Chinese industrial profits surged, reversing months of declines, signaling that national campaigns to tackle overcapacity and excessive competition are bearing fruit https://t.co/OlGl6387S8 ...

Summary of Key Points from the Conference Call Industry Overview - The report focuses on the **Chinese industrial sector**, specifically analyzing industrial profits and revenues for July and August 2023. Core Insights 1. **Year-over-Year Performance**: - China's industrial profits decreased by **1.1%** year-over-year (yoy) in July, an improvement from a **4.4%** decline in June [5] - Industrial revenue increased by **1.0%** yoy in July, compared to **1.5%** in June [5] 2. **Sequential Growth**: - Sequentially, industrial profits rose by **3.2%** non-annualized in July, down from **6.5%** in June [5] - Revenue saw a slight decline of **0.3%** non-annualized in July, contrasting with a **0.2%** increase in June [5] 3. **Sector Performance**: - Downstream industries experienced a profit increase of **3.8%** yoy in July, while upstream industries saw a profit decline of **13.5%** yoy [5] - The broad manufacturing sector contributed to a **3.6 percentage points** acceleration in industrial profit growth in July compared to June [5] 4. **Raw Material Sector**: - Profits in the raw material manufacturing sector surged by **36.9%** yoy in July, a significant recovery from a **5%** decline in June [5] - This growth aligns with rising domestic commodity prices, indicating the potential impact of government "anti-involution" policies [5] 5. **Profit Margins**: - Overall profit margins remained stable in July on a 12-month average basis, although upstream profit margins continued to lag behind downstream [5] PMI Forecasts - Expectations for August PMIs include: - NBS manufacturing PMI projected to remain flat at **49.3** [6] - RatingDog manufacturing PMI expected to rise to **50.0** from **49.5** in July, indicating slight export growth [6] - NBS non-manufacturing PMI anticipated to increase to **50.3** from **50.1** in July, driven by improvements in the financial services sector [6] Additional Considerations - High-frequency indicators, such as steel production, showed a marginal increase in August, suggesting some recovery in industrial activity [6] - Adverse weather conditions are likely to have continued disrupting construction activities in August [6] This summary encapsulates the key findings and forecasts regarding the Chinese industrial sector, highlighting both the challenges and potential recovery signals within the industry.

Market Trends - Aluminum and copper prices remained stable [1] - China's industrial companies experienced a slower decline in profits in July [1]

Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - China's industrial profits fell by 9.4% year-over-year in May, while revenue increased by 0.7% year-over-year, indicating a decline in profitability despite slight revenue growth [1][5] - Sequentially, industrial profits and revenue decreased by 9.7% and 1.0% non-annualized in May, contrasting with increases in April [1][5] - Downstream industries experienced a profit decline of 3.0% year-over-year in May, while upstream industries saw a more significant drop of 27.6% year-over-year [5] Summary by Sections Industrial Profits - Year-over-year, industrial profits decreased by 9.4% in May compared to a growth of 3.2% in April [2][5] - Sequentially, profits fell by 9.7% non-annualized in May after seasonal adjustment, reversing from a 4.0% increase in April [5] Industrial Revenue - Year-over-year, industrial revenue rose by 0.7% in May, down from 2.6% in April [2][5] - Sequentially, revenue fell by 1.0% non-annualized in May, compared to a decrease of 0.6% in April [5] Profit Margins - Overall profit margins remained stable in May on a 12-month average basis, with downstream profit margins outperforming upstream [5] Sector Performance - The broad equipment manufacturing sector contributed 2.4 percentage points to the year-over-year growth of industrial profits in the first five months of the year [5] - Within this sector, profits in electrical machinery and general equipment grew by 11.9% and 11.6% year-over-year, respectively [5] PMI Forecasts - The report forecasts the NBS manufacturing PMI to be 49.4 in June, slightly down from 49.5 in May [6] - The Caixin manufacturing PMI is expected to be 49.1 in June, an increase from 48.3 in May, reflecting a delayed response to US-China tariff reductions [6]