In October, the profit growth of industrial enterprises picked up steadily. On November 27, the Bureau of Statistics announced the profits of Industrial Enterprises above Designated Size in October. From January to October, industrial enterprises above Designated Size achieved a total profit of 7164.99 billion yuan, a year-on-year increase of 42.2% and an average increase of 19.7% in the two years. In October, the monthly profit increased by 24.6% year-on-year. In October, the profits of industrial enterprises rebounded steadily, corresponding to the high point of 13.5% of PPI in October. Upstream raw material prices remained high, and the profits of industrial enterprises maintained a high growth rate, forming support.
Upstream industries such as petroleum, coal chemical industry and ferrous metals are the main reasons for the recovery of industrial profit growth. With the implementation of energy supply protection policies and measures, in October, the total profit of oil, coal and other fuel processing industry increased by 5.76 times year-on-year, the oil and natural gas mining industry increased by 2.63 times, and the coal mining and washing industry increased by 2.10 times. The profit growth of the midstream manufacturing industry was steady, but fell month on month. Computer, communication and other electronic equipment manufacturing industry increased by 34.3%, special equipment manufacturing industry increased by 14.9%, electrical machinery and equipment manufacturing industry increased by 14.6%, general equipment manufacturing industry increased by 13.7%, automobile manufacturing industry decreased by 2.9%, and textile industry increased by 1.9%. The profit of consumer goods manufacturing industry has changed from decline to increase, and the profit of agricultural and sideline food industry has declined. In October, the market demand for relevant consumer goods was driven by factors such as the increase of goods preparation orders during the shopping festival. The profit of consumer goods manufacturing industry increased by 3.6% from a year-on-year decrease last month, but the agricultural and non-staple food processing industry decreased by 10.0%. The overall performance of consumer goods is relatively differentiated.
Overall, the profits of industrial enterprises rebounded significantly in October, which was stronger than seasonality as a whole. In addition to the base effect, the contribution of prices and profits of upstream industries is still the main reason for support, and the performance of other industries is relatively differentiated. However, the prices of coal and other raw materials fell in recent months under the measures of ensuring supply and stabilizing prices, and with the gradual peak decline of PPI, the subsequent transmission of profits from upstream to middle and downstream will continue, but the process is expected to be slow. Midstream and downstream enterprises still face great cost pressure, and the obvious improvement of downstream profits may still need the boost of terminal demand. The contribution of upstream industries to the profits of the whole industry is expected to fall, but it will remain high on the whole. The recovery of inventory was partly driven by shopping festival factors, and the sustainability of maintaining a high level in the future was limited.
Covid-19 epidemic. The growth rate of covid-19 epidemic diagnosis continued to pick up. As of November 27, there were 261 million confirmed cases of covid-19 pneumonia worldwide, 3.92 million more than the previous week and 192000 more than the previous week. The newly diagnosed cases in Germany, Britain and France were 49000, 39000 and 37000 respectively. In China, with the advent of winter, the epidemic situation appears locally scattered. In the past week, asymptomatic local infections occurred in Shanghai, Zhejiang, Jiangsu and Inner Mongolia.
Increase in financing balance. On November 25, the balance of A-share financing was 172.164 billion yuan, an increase of 2.610 billion yuan month on month; The balance of margin trading was 1853.733 billion yuan, an increase of 1.629 billion yuan month on month. The balance of financing minus securities lending was 1588.795 billion yuan, an increase of 3.591 billion yuan month on month.
Net sales of northbound funds. On November 26, the net purchase transaction of land stock connect on that day was -4.489 billion yuan, including 45.11 billion yuan of purchase transaction and 49.599 billion yuan of sales transaction, with a cumulative net purchase transaction of 1545.712 billion yuan. Hong Kong stock connect had a net purchase turnover of HK $961 million on the same day, including a purchase turnover of HK $15.247 billion and a sale turnover of HK $14.286 billion, with a cumulative net purchase turnover of HK $213.363 billion.
Money market interest rates fluctuated. On November 26, Bank Of Shanghai Co.Ltd(601229) inter-bank offered rate Shibor’s overnight interest rate was 1.7120%, down 11.10bp, Shibor’s weekly interest rate was 2.2470%, up 1.60bp. The weighted interest rate of pledged repo of deposit institutions was 1.6941% overnight, down 13.12bp and 2.2600% a week, up 1.39bp. The 10-year maturity yield of China national debt was 2.8550%, down 0.50bp.
All three major U.S. stocks ended sharply lower, while European stock markets generally fell. On November 26, the Dow Jones Industrial Average closed at 34899.34 points, down 2.53%; The S & P 500 index closed at 4594.62 points, down 2.27%; The NASDAQ index closed at 15491.66, down 2.23%. European stock markets, French CAC index closed at 6739.73 points, down 4.75%; Germany DAX index closed at 15257.04 points, down 4.15%; The FTSE 100 index closed at 7044.03, down 3.64%. In the Asia Pacific market, the Nikkei index closed at 28751.62 points, down 2.53%; The Hang Seng Index closed at 24080.52, down 2.67%.
The dollar index fell. On November 26, the dollar index fell 0.75% to 96.7860. The euro rose 0.98% against the dollar to 1.1209. The dollar fell 1.72% against the yen to 115.3700. Sterling rose 0.14% against the dollar to 1.3322. The spot exchange rate of RMB against the US dollar closed at 6.3913, depreciating by 0.03%. The spot exchange rate of offshore RMB against the US dollar closed at 6.3877, depreciating by 0.15%. The central parity rate of RMB against the US dollar closed at 6.3936, up 0.07%.
Gold rose, crude oil fell and copper rose. On November 26, Comex gold futures rose 0.20% to close at US $1792.30 / ounce. WTI crude oil futures fell 12.96% to close at US $68.17/barrel. Brent crude oil futures fell 11.34% to close at US $71.80/barrel. COMEX copper futures rose 1.26% to close at US $4.4745/lb. LME copper three-month futures fell 3.24% to US $9445 / ton.
