China Policymakers Reiterate Commitment to 5% Growth Target, Industrial Profit Rebounds

Li Chen
28 Apr, 2025
Hong Kong

In cautious trading, market indexes in China and Hong Kong edged slightly lower ahead of announcements from policymakers.

The Hang Seng index decreased 0.2%, and the mainland-focused CSI 300 index declined 0.1% in cautious trading as investors reviewed the latest update on industrial profit. 

Market sentiment was cautious despite the rebound in industrial profit in the first quarter. 

Investors also reviewed the latest comments from a joint meeting of several government agencies held on Monday morning to discuss measures to stabilize the employment market and support economic growth. 

The National Development and Reform Commission, the People's Bank of China, the Ministry of Human Resources and Social Security, and the Ministry of Commerce officials gathered Monday morning to discuss their efforts in shoring up economic growth and boosting consumer confidence. 

 “We still have ample policy reserves and plenty of policy space,” said Zhao Chenxin, deputy head of the National Development and Reform Commission. 

Policymakers expressed confidence that China's economy is set to meet its annual economic growth of 5%, despite the headwinds in trade relations with the U.S. 

 

Industrial Profit Rebounded in First Quarter

Industrial profit in the first quarter advanced 0.8% from a year ago to 1.5 trillion yuan, or about $205 billion, according to an update by the National Bureau of Statistics. 

The cumulative profit reversed a 0.5% decline in the first two months from a year ago. 

Profit advanced 2.6% from a year ago in March. 

State-owned companies reported a decline in profit of 1.4%, private sector companies booked a profit decrease of 0.3%, and foreign-owned companies saw a profit decline of 2.8%.

On Friday, the Politburo offered a vague statement, reiterating its commitment to support companies and employees in the export sector hit by high U.S. tariffs. 

Policymakers and political leaders in recent weeks have urged export-driven companies to focus on the domestic market and reiterated the government's commitment to its investment in innovation and consumption.  

 

China Indexes and Stocks 

The Hang Seng index decreased 0.2% to 21,930.89, and the CSI 300 index dropped 0.1% to 3,786.64. 

BYD decreased 4% to HK $380.60, Li Auto jumped 0.6% to HK $91.15, and Xpeng fell 0.9% to HK $77.05. 

CATL declined 1.1% to ¥233.97, Shenzhou International Group decreased 0.2% to HK $52.80, and China Resources Land declined 2.6% to HK $26.50. 

Alibaba Group Holding declined 0.1% to HK $115.70, Tencent Holdings advanced 0.1% to HK $478.80, and JD.com jumped 2.7% to HK $127.10.