Industrial companies post rise in profit
By Wang Yanlin |
March 27, 2010, Saturday
|
Print Edition
Print Edition
PROFIT at China's industrial companies more than doubled in the first two months of 2010 from a year earlier, indicating ample demand and strong growth momentum in manufacturing.
A low comparative base was the major contributor to the surge, the National Bureau of Statistics said yesterday.
It added that profit has returned to levels before the financial crisis.
Net earnings of China's industrial companies climbed 119.7 percent year on year to 486.7 billion yuan (US$71.3 billion) in the January-February period.
The sharp rise compared with an annual increase of 7.8 percent in the first 11 months of last year -- the first rise in a year that marked a turning point in the country's recovery from the crisis.
"Despite a low comparative base, the figure still suggests strong demand, both domestic and overseas," said Li Maoyu, an analyst at Changjiang Securities Co. "It shows China's economy is well on track."
In a report released yesterday along with the figure, the bureau said a low comparative base was the major reason for the surge in the two months through February.
"Profit plunged 37.3 percent in the first two months of last year, which constituted a very low base for this year. The rise is just bringing growth momentum back to the pre-crisis level," the report said.
But it also mentioned the contribution of quickly expanding industrial output in the first two months, after the central government's massive stimulus package helped the manufacturing sector.
Industrial production accelerated 20.7 percent in the first two months from a year earlier, the fastest pace in nearly two years and higher than a forecast of 19.5 percent.
The acceleration in manufacturing was consistent with the sharp rebound in exports, which advanced 31.3 percent year on year in the two months.
The profit surge among industrial companies was led by state-owned enterprises, with combined earnings jumping 213.6 percent from a year earlier to 178 billion yuan in the first two months. Foreign-invested companies and those from Hong Kong, Macau and Taiwan reported that earnings increased 125.1 percent.
A low comparative base was the major contributor to the surge, the National Bureau of Statistics said yesterday.
It added that profit has returned to levels before the financial crisis.
Net earnings of China's industrial companies climbed 119.7 percent year on year to 486.7 billion yuan (US$71.3 billion) in the January-February period.
The sharp rise compared with an annual increase of 7.8 percent in the first 11 months of last year -- the first rise in a year that marked a turning point in the country's recovery from the crisis.
"Despite a low comparative base, the figure still suggests strong demand, both domestic and overseas," said Li Maoyu, an analyst at Changjiang Securities Co. "It shows China's economy is well on track."
In a report released yesterday along with the figure, the bureau said a low comparative base was the major reason for the surge in the two months through February.
"Profit plunged 37.3 percent in the first two months of last year, which constituted a very low base for this year. The rise is just bringing growth momentum back to the pre-crisis level," the report said.
But it also mentioned the contribution of quickly expanding industrial output in the first two months, after the central government's massive stimulus package helped the manufacturing sector.
Industrial production accelerated 20.7 percent in the first two months from a year earlier, the fastest pace in nearly two years and higher than a forecast of 19.5 percent.
The acceleration in manufacturing was consistent with the sharp rebound in exports, which advanced 31.3 percent year on year in the two months.
The profit surge among industrial companies was led by state-owned enterprises, with combined earnings jumping 213.6 percent from a year earlier to 178 billion yuan in the first two months. Foreign-invested companies and those from Hong Kong, Macau and Taiwan reported that earnings increased 125.1 percent.
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