China's Industrial Profits Show Mixed Growth Amid Lingering Deflation

China's industrial profits grew for a third consecutive month in October, but at a slower pace, indicating the need for further policy support to boost the country's economy. The 2.7% year-on-year increase in profits narrowed from previous months, putting pressure on authorities to provide more assistance to manufacturers amid soft global demand. Profits for the first 10 months of 2023 declined 7.8% compared to the previous year. China's economy has faced challenges including housing market distress, local government debt risks, slow global growth, and geopolitical tensions. The government has implemented various support measures, but the impact has been limited, prompting calls for additional stimulus.