According to the Chinese statistics bureau, industrial firms in China saw a 2.3% year-on-year profits increase in December (to 844.4 billion yuan), after a 14.5% increase in November. Their full-year earnings increased by 8.5% to 6.88 trillion yuan, reversing a 2.3% decline in 2015.

Tommy Xie, an economist at OCBC Bank in Singapore, said: “Raw-material prices are rising, but producers weren’t able to pass the increase on to consumers, so they are somewhat squeezed. If the economy continues to stabilise, there’s still room for profit growth, but the global environment — especially a more protectionist USA under President Trump — will cause uncertainty.

“The slowdown underscores the challenges faced by Chinese producers, from heavy debt to the risk of a property downturn to potential trade tensions. Policy makers also plan to cut excess industrial capacity and curb financial risks this year amid a growth deceleration.”