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Industrial profit eases faster
By Wang Yanlin |
September 28, 2010, Tuesday
|
Print Edition
Print Edition
PROFITS of China's industrial companies moderated at a faster pace in August because the country's manufacturing sector cooled amid restructuring efforts, but businessmen were generally optimistic about the nation's future economic growth.
Their net income rose 55 percent from a year earlier in the first eight months to 2.6 trillion yuan (US$388 billion), the National Bureau of Statistics said yesterday.
The profit growth eased further from the increase of 61.1 percent through July and 71.8 percent in the first half.
"The weakening industrial profit growth may prevail for some more months because efforts to contain polluting projects will still continue," said Li Maoyu, an analyst at Changjiang Securities Co.
The weaker rise in profit reflected the moderation in the country's industrial production although the rate edged up in August to 13.9 percent from July's 13.4 percent.
"The industrial activities will likely be further negatively impacted by intense supply-side adjustment in September, reflecting the authorities' efforts to meet the deadline to shut down a large number of energy-inefficient production units by the end of this month," said Wang Qing, an economist at Morgan Stanley.
Profits of state-owned enterprises grew 67.5 percent from a year earlier to 842.3 billion yuan in the first eight months, the fastest among all segments.
Profits of private companies jumped 50.9 percent during the period while foreign firms and those invested by Hong Kong, Macau and Taiwan businessmen saw their profit gain 54.5 percent annually.
Industries related to exploration of raw materials posted strong gains in net earnings. The net profit of petroleum and natural gas exploration firms surged 93.2 percent annually and that of non-ferrous metals more than doubled from a year earlier.
But business people in China generally remained confident about the country's economy.
In a China Business Sentiment Survey released last Friday by Market News International, overall conditions for Chinese companies rose to 69.54 in September from 62.16 in August and 64.94 in July. The index was at 60.47 a year ago.
Their net income rose 55 percent from a year earlier in the first eight months to 2.6 trillion yuan (US$388 billion), the National Bureau of Statistics said yesterday.
The profit growth eased further from the increase of 61.1 percent through July and 71.8 percent in the first half.
"The weakening industrial profit growth may prevail for some more months because efforts to contain polluting projects will still continue," said Li Maoyu, an analyst at Changjiang Securities Co.
The weaker rise in profit reflected the moderation in the country's industrial production although the rate edged up in August to 13.9 percent from July's 13.4 percent.
"The industrial activities will likely be further negatively impacted by intense supply-side adjustment in September, reflecting the authorities' efforts to meet the deadline to shut down a large number of energy-inefficient production units by the end of this month," said Wang Qing, an economist at Morgan Stanley.
Profits of state-owned enterprises grew 67.5 percent from a year earlier to 842.3 billion yuan in the first eight months, the fastest among all segments.
Profits of private companies jumped 50.9 percent during the period while foreign firms and those invested by Hong Kong, Macau and Taiwan businessmen saw their profit gain 54.5 percent annually.
Industries related to exploration of raw materials posted strong gains in net earnings. The net profit of petroleum and natural gas exploration firms surged 93.2 percent annually and that of non-ferrous metals more than doubled from a year earlier.
But business people in China generally remained confident about the country's economy.
In a China Business Sentiment Survey released last Friday by Market News International, overall conditions for Chinese companies rose to 69.54 in September from 62.16 in August and 64.94 in July. The index was at 60.47 a year ago.
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