VIEW: ING note that "industrial profits.......>

CHINA: VIEW: ING note that "industrial profits fell 34.9%YoY in March after

falling 38.3%YoY in January to February. The continued deep fall in industrial

profits shows that China has faced a continued fall in demand for goods from

foreign economies due to Covid-19's impact on those economies' job markets and

wages growth. The re-opening of a few European and US cities does not mean a

meaningful rebound of activity and demand for goods and services even in these

places. Unemployment rates are rising, and even those hanging on to jobs could

face a fall in wages. This means that the demand for goods in a large part of

the world will be weaker than in pre-Covid-19 times. As such manufacturing and

exports from China will continue to face difficulties. Industrial profits will

have to rely more on domestic demand. But conditions are not much better in

China. With the shrinkage in demand from overseas, factories are receiving fewer

export orders, and they too need fewer employees or may need to cut wages. There

will be also challenges from domestic demand."