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Chinese manufacturers post profit rebound in June
By Wang Yanlin |
July 27, 2011, Wednesday
|
Online Edition
Online Edition
CHINA'S industrial profits rebounded in June as production picked up speed, but analysts said the monthly gain may be temporary as the outlook for the manufacturing sector remained gloomy.
Net earnings of industrial companies increased 28.7 percent from a year earlier to 2.41 trillion yuan (US$374 billion) in the first half of this year, compared with 27.9 percent between January and May, the National Bureau of Statistics said today.
Though unexpected, the acceleration was in line with the industrial production in June, which grew 15.1 percent year on year, up from 13.3 percent a month earlier.
It ended a streak of profit growth moderation that started from the beginning of this year.
"The profit rebound is a result of the diminishing impact from Japans' earthquake and still solid investment in the domestic market," said Li Maoyu, a Changjiang Securities Co analyst. "But with negative factors in both internal and external markets, China's manufacturers may see a short-lived rebound."
China's credit tightening will still take hold as policymakers vowed to fight inflation as their top priority. The central bank has raised the interest rates three times so far this year and raised the bank reserve requirement ratio six times. Outside the country, the EU debt crisis is hardly abating and is threatening the demand of China's largest trading partner.
Net earnings of industrial companies increased 28.7 percent from a year earlier to 2.41 trillion yuan (US$374 billion) in the first half of this year, compared with 27.9 percent between January and May, the National Bureau of Statistics said today.
Though unexpected, the acceleration was in line with the industrial production in June, which grew 15.1 percent year on year, up from 13.3 percent a month earlier.
It ended a streak of profit growth moderation that started from the beginning of this year.
"The profit rebound is a result of the diminishing impact from Japans' earthquake and still solid investment in the domestic market," said Li Maoyu, a Changjiang Securities Co analyst. "But with negative factors in both internal and external markets, China's manufacturers may see a short-lived rebound."
China's credit tightening will still take hold as policymakers vowed to fight inflation as their top priority. The central bank has raised the interest rates three times so far this year and raised the bank reserve requirement ratio six times. Outside the country, the EU debt crisis is hardly abating and is threatening the demand of China's largest trading partner.
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