Salient to Investors:
Government measures to stimulate the world’s second-biggest economy have yet to reverse a slowdown that may deepen for a sixth quarter.
China’s economy expanded 8.1 percent in Q1, the least in almost three years and the fifth quarterly deceleration.
Predictions:
Dariusz Kowalczyk at Credit Agricole CIB said industrial profits will continue to be under pressure as the slowdown in the economy is curbing demand and deflation is further squeezing profits – profits may well recover in half2 as the economy is revived by monetary and fiscal stimulus and commodity prices weaken. Growth will drop to as low as 7 percent in Q2.
Bank of America estimates growth will slide to 7.5 percent in Q2.
Read the full article at http://www.bloomberg.com/news/2012-06-29/chinese-industrial-companies-profits-drop-for-second-month-1-.html