Enterprises' rising profits a cure for market anxiety

Business revenues of industrial enterprises in China above designated size increased by 7.6 percent year-on-year from January to October, but the total profits fell by 3 percent year-on-year, 0.7 percentage points lower than the January-September period, the latest data show.

Despite this, the industrial structure of profits continue to improve, with the equipment manufacturing industry registering a rebound in profits for six consecutive months, and foreign enterprises and small and medium-sized enterprises also seeing their profits improving. Car sales, new energy vehicle sales in particular, have become the bright spot this year.

On the one hand, the economy grew by 3.9 percent in the third quarter and 3 percent in the first three quarters. On the other hand, the State Council has recently introduced a slew of measures, especially measures for the sluggish real estate market, which are expected to help further restore market confidence. This, coupled with the central bank's latest reserve requirement ratio cut, will add more impetus to the year-end "economic sprint".