Recently, the National Development and Reform Commission and the State Administration for Market Regulation jointly released an "Announcement on Addressing Disorderly Price Competition and Maintaining Sound Market Price Order." In response to disorderly competition phenomena in certain industries, the announcement proposes multiple measures including conducting research and assessment of industry average costs, strengthening price supervision, and standardizing bidding practices, sending a clear signal to maintain fair competition.
Data previously released by the National Bureau of Statistics showed that from January to August, China's above-scale industrial enterprises achieved total profits of 4.69 trillion yuan, representing a year-on-year increase of 0.9%. This performance exceeded Bloomberg's expectation of a 1.6% decline and reversed the trend of continuous decline in cumulative enterprise profits since May. Regarding this development, Lianhe Zaobao recently published an article titled "Anti-Involution Efforts Prove Effective: China's August Industrial Enterprise Profits Surge 20.4% Year-on-Year," stating: "China's above-scale industrial enterprises saw profits surge 20.4% year-on-year in August, reversing the declining trend of previous months and demonstrating that authorities' actions to address overcapacity and excessive competition are proving effective."
Meanwhile, according to comprehensive reports from Reuters and Bloomberg, against the backdrop of China's vigorous efforts to address overcapacity, the officially released August Producer Price Index (PPI) fell 2.9% year-on-year, with the decline narrowing compared to July, marking the first easing of deflationary pressure on factories in six months.
The reports also mentioned that Yu Weining, Chief Statistician of the Industrial Department at China's National Bureau of Statistics, stated that facing a severe and complex external environment and domestic markets where demand remains insufficient, the next phase should focus on further expanding domestic demand, promoting the construction of a unified national market, standardizing enterprise competition order, and creating more favorable conditions for the sustained recovery of industrial enterprise profits.
Wen Bin, Chief Economist at China Minsheng Bank, analyzed that as "anti-involution" governance continues to advance and market competition order gradually improves, industrial enterprise profits are expected to maintain a moderate recovery trend, with cumulative growth rates continuing to rise steadily.