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Below are Quote On Bleak industrial data eases worries over policy tightening by PBOC By Mr. Yash Sawant, Research Associate, Angel Broking Ltd.

Bleak industrial data eases worries over policy tightening by PBOC

 Base metals traded higher as bleak prospects of further monetary policy tightening by the PBOC supported market sentiments.

China’s Industrial profits witnessed a slow growth in April’21 following the strict power consumption norms and high commodity prices. Chinese Industrial firms’ profits stood at 768.63 billion yuan ($120.22 billion) in April’21, lower by 93 percent from the earlier month, data as per National Bureau of Statistics (NBS). 

Along with the energy consumption norms, impeded global supply chains ranging from shipping disruption, container shortage to increasing freight rates undermined the industrial segment.

Industrial profits were weighed down despite rising Chinese exports in the similar time frame. Revival in global economies amid stalled industrial activities in the virus struck nations boosted the demand for Chinese products in the overseas markets. As per China's General Administration of Customs, Chinese exports in April’21 stood at $263.92 billion, 32.3 percent higher from the earlier month.

However, weakening of China’s industrial segment alleviated worries over further policy tightening by the People’s Bank of China (PBOC) which supported market sentiments. 

Also, signs of improvement in the Sino-American relations overshadowed the recent shortcomings in China industrial sector.

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