Demand gives rise to increase in firms' profits
By Wang Yanlin |
February 4, 2012, Saturday
|
Print Edition
Print Edition
PROFIT growth among China's industrial companies quickened in December, indicating a stabilizing economy thanks to healthy domestic demand and loosening policies.
The net earnings of Chinese manufacturers expanded 31.5 percent from a year earlier to 790 billion yuan (US$125 billion) in December, the National Bureau of Statistics said yesterday.
Last year's manufacturing profits totaled 5.45 trillion yuan, up 25.4 percent annually, which was faster than the pace of 24.4 percent in the first 11 months. But the rate was still significantly weaker than 2010's 50 percent.
"China's manufacturing activities seem to be gathering momentum again," said Li Maoyu, a Changjiang Securities Co analyst. "It is largely the result of healthy domestic demand, and the profit growth is likely be sustainable amid a stabler economy."
But Xue Jun, an analyst at CITIC Securities Co, warned that shrinking external demand would continue to threaten China's industrial companies.
"The eurozone debt crisis shows no sign of recovery, and the Chinese currency may accelerate in appreciation, making exports more expensive," Xue said.
He expected some fluctuations in China's industrial production over the next few months.
The official Purchasing Managers' Index, a comprehensive gauge of manufacturing activities, edged up 0.2 points from December to 50.5 last month.
Above 50 indicates expansion and it was the second month in a row the index showed improvement in China's manufacturing activities.
To consolidate the position, Qu Hongbin, chief economist for China at HSBC, suggested China should introduce more easing policies.
The central bank allowed banks to put aside less capital as reserves in early December. It also ordered lenders to give more financial support to small and medium-sized companies.
Such moves bolstered market liquidity, and some analysts expect January's new yuan loans would show a rise to 1.15 trillion yuan, compared to December's 640.5 billion yuan.
Private businesses remained the driving force of the gain in profits last year with their profits surging 46 percent from a year earlier to 1.66 trillion yuan.
Earnings of foreign-invested businesses and those from Hong Kong, Macau and Taiwan rose 10.6 percent to 1.4 trillion yuan, while state-owned enterprises said their profits rose 15 percent to 1.49 trillion yuan.
The industrial profit figures cover companies with annual sales of at least 20 million yuan in 39 industries.
The net earnings of Chinese manufacturers expanded 31.5 percent from a year earlier to 790 billion yuan (US$125 billion) in December, the National Bureau of Statistics said yesterday.
Last year's manufacturing profits totaled 5.45 trillion yuan, up 25.4 percent annually, which was faster than the pace of 24.4 percent in the first 11 months. But the rate was still significantly weaker than 2010's 50 percent.
"China's manufacturing activities seem to be gathering momentum again," said Li Maoyu, a Changjiang Securities Co analyst. "It is largely the result of healthy domestic demand, and the profit growth is likely be sustainable amid a stabler economy."
But Xue Jun, an analyst at CITIC Securities Co, warned that shrinking external demand would continue to threaten China's industrial companies.
"The eurozone debt crisis shows no sign of recovery, and the Chinese currency may accelerate in appreciation, making exports more expensive," Xue said.
He expected some fluctuations in China's industrial production over the next few months.
The official Purchasing Managers' Index, a comprehensive gauge of manufacturing activities, edged up 0.2 points from December to 50.5 last month.
Above 50 indicates expansion and it was the second month in a row the index showed improvement in China's manufacturing activities.
To consolidate the position, Qu Hongbin, chief economist for China at HSBC, suggested China should introduce more easing policies.
The central bank allowed banks to put aside less capital as reserves in early December. It also ordered lenders to give more financial support to small and medium-sized companies.
Such moves bolstered market liquidity, and some analysts expect January's new yuan loans would show a rise to 1.15 trillion yuan, compared to December's 640.5 billion yuan.
Private businesses remained the driving force of the gain in profits last year with their profits surging 46 percent from a year earlier to 1.66 trillion yuan.
Earnings of foreign-invested businesses and those from Hong Kong, Macau and Taiwan rose 10.6 percent to 1.4 trillion yuan, while state-owned enterprises said their profits rose 15 percent to 1.49 trillion yuan.
The industrial profit figures cover companies with annual sales of at least 20 million yuan in 39 industries.
- 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.
