China’s industrial profits bottom, but…

David Llewellyn-Smith

Tuesday 27 November 2012

China’s industrial profits have bottomed, climbing for the time in October for many months:

Here’s the chart:

Not exactly v-shaped but rising. Perhaps there’s hope the Shanghai Composite yet!

However, a glance at the internals does not bode well for Australia:

Check out ferrous metal smelting, that is, steel. It may be that losses are improving but at a snail’s pace. The “rebound” in this sector does not really justify the term.

About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.