MNI BRIEF: China Industrial Profits Increase In April

China saw profits of large-scale industrial enterprises increase by 1.4% y/y from January to April, an acceleration of 0.6 percentage points compared to Q1, the National Bureau of Statistics announced on Tuesday.

In April alone, profits rose 3.0% y/y, 0.4 pp faster than March, the bureau added.

The results demonstrated China's industrial resilience and ability to withstand shocks, officials said in a statement on the bureau’s website, but admitted the foundation for sustained profit recovery needs further consolidation.

The People’s Bank of China is likely to prevent any sharp appreciation of the yuan from about 7.20 against the dollar in the near term as talks are expected with the U.S., so any coming strength in the greenback would see China’s exchange rate gain against other currencies, advisors and traders recently told MNI. (See MNI: Yuan Seen Strengthening Against Crosses)