Related News
China industry profit falls 6.2% in August
By Wang Yanlin |
September 27, 2012, Thursday
|
Online Edition
Online Edition
Chinese manufacturers posted the sharpest fall in profit this year in August, reflecting deteriorating conditions and prompting calls for further policy easing.
Net earnings of domestic industrial firms fell 6.2 percent from a year earlier to 381.2 billion yuan (US$60.5 billion) last month, the worst this year compared with July's decrease of 5.4 percent, the National Bureau of Statistics said today.
In the first eight months, industrial earnings lost 3.1 percent to 3.05 trillion yuan, a sharp drop from last year's increase of 25.4 percent.
"China's manufacturers are suffering from higher production costs, which are not compatible with sluggish sales in both external and internal markets right now," said Li Maoyu, an analyst at Changjiang Securities Co. "The country needs to enhance policy efforts to support struggling industrial companies."
Chang Jian, a Barclays economist, said "slowing external demand and insufficient policy supports are two major risks that could further delay the modest growth recovery that people expect in the third quarter."
China's gross domestic product expanded 7.6 percent year on year in the second quarter, the slowest pace in three years. Some economists have cut their third-quarter growth forecast to as low as 7.3 percent.
However, there are signs of improvement. The HSBC Flash Purchasing Managers' Index, the earliest available indicator of China's industrial activity, rose to 47.8 in September from 47.6 in August, though still in the range of contraction.
Xue Jun, an analyst at CITIC Securities Co, said a modest policy support has helped to stabilize the growth.
The longer-than-expected slowdown prompted the government to speed up approvals for major investment projects and to inject liquidity into the banking system through reverse repurchase agreements in recent months.
The government also promised faster return of export tax rebates, more loans to exporters and wider coverage of export credit insurance in an effort to boost China's trade and economy.
Private businesses still reported an average profit growth of 15.1 percent in the first eight months, the bureau's data showed, while the earnings of foreign-invested firms and those from Hong Kong, Macau and Taiwan slumped 12.7 percent. State-owned enterprises posted a profit decrease of 12.7 percent.
Among 41 industries being tracked, 24 reported a profit growth during the first eight months, led by electricity industry whose profit jumped 36.5 percent from a year earlier.
Net earnings of domestic industrial firms fell 6.2 percent from a year earlier to 381.2 billion yuan (US$60.5 billion) last month, the worst this year compared with July's decrease of 5.4 percent, the National Bureau of Statistics said today.
In the first eight months, industrial earnings lost 3.1 percent to 3.05 trillion yuan, a sharp drop from last year's increase of 25.4 percent.
"China's manufacturers are suffering from higher production costs, which are not compatible with sluggish sales in both external and internal markets right now," said Li Maoyu, an analyst at Changjiang Securities Co. "The country needs to enhance policy efforts to support struggling industrial companies."
Chang Jian, a Barclays economist, said "slowing external demand and insufficient policy supports are two major risks that could further delay the modest growth recovery that people expect in the third quarter."
China's gross domestic product expanded 7.6 percent year on year in the second quarter, the slowest pace in three years. Some economists have cut their third-quarter growth forecast to as low as 7.3 percent.
However, there are signs of improvement. The HSBC Flash Purchasing Managers' Index, the earliest available indicator of China's industrial activity, rose to 47.8 in September from 47.6 in August, though still in the range of contraction.
Xue Jun, an analyst at CITIC Securities Co, said a modest policy support has helped to stabilize the growth.
The longer-than-expected slowdown prompted the government to speed up approvals for major investment projects and to inject liquidity into the banking system through reverse repurchase agreements in recent months.
The government also promised faster return of export tax rebates, more loans to exporters and wider coverage of export credit insurance in an effort to boost China's trade and economy.
Private businesses still reported an average profit growth of 15.1 percent in the first eight months, the bureau's data showed, while the earnings of foreign-invested firms and those from Hong Kong, Macau and Taiwan slumped 12.7 percent. State-owned enterprises posted a profit decrease of 12.7 percent.
Among 41 industries being tracked, 24 reported a profit growth during the first eight months, led by electricity industry whose profit jumped 36.5 percent from a year earlier.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
