Profit growth drops in H1 fall on slowdown
Source: Xinhua |
August 20, 2012, Monday
|
Print Edition
Print Edition
CHINA'S economic slowdown has been impacting the country's corporate profits, as profit growth in the country's listed companies largely contracted in the first half of the year.
As of Friday, 1,003 companies listed on the Shanghai Stock Exchange or Shenzhen Stock Exchange posted a combined first-half net profit of 180.21 billion yuan (US$28.38 billion), up 6.75 percent annually, Saturday's China Securities Journal reported.
The growth figure took a major tumble compared to that reported on the same day last year, as the semiannual net profits of all 1,096 listed companies in 2011 had surged a substantial 36.14 percent from one year earlier.
Industrial sectors such as steel, construction and building materials have fared the worst, affected by the tightening grip over the real estate industry and cooling investment enthusiasm.
Aggregated net profits at eight steel companies that have unveiled their interim reports fell by 68.49 percent year on year to 542 million yuan, the newspaper said.
Construction and building materials firms' combined first-half net profits shrank 28.67 percent annually, it said.
Profits of state-owned enterprises fell 13.2 percent in the first seven months from the same period last year, according to statistics from the Ministry of Finance.
The sluggish economic growth has also meant disappointing passenger flows for the country's major airlines. Air China, China Eastern Airlines and China Southern Airlines all forecast their first-half net profits to fall by over 50 percent.
Amid global economic instability and uncertainties, especially the eurozone debt turmoil, China's economy grew 7.6 percent in the second quarter from one year earlier, marking the lowest growth level in more than three years.
As of Friday, the Shanghai stock index had shed nearly 15 percent from its peak this year.
To boost the economy, China has cut benchmark interest rates twice this year, in June and July, respectively, and also lowered the bank reserve requirement ratio in February and May.
As of Friday, 1,003 companies listed on the Shanghai Stock Exchange or Shenzhen Stock Exchange posted a combined first-half net profit of 180.21 billion yuan (US$28.38 billion), up 6.75 percent annually, Saturday's China Securities Journal reported.
The growth figure took a major tumble compared to that reported on the same day last year, as the semiannual net profits of all 1,096 listed companies in 2011 had surged a substantial 36.14 percent from one year earlier.
Industrial sectors such as steel, construction and building materials have fared the worst, affected by the tightening grip over the real estate industry and cooling investment enthusiasm.
Aggregated net profits at eight steel companies that have unveiled their interim reports fell by 68.49 percent year on year to 542 million yuan, the newspaper said.
Construction and building materials firms' combined first-half net profits shrank 28.67 percent annually, it said.
Profits of state-owned enterprises fell 13.2 percent in the first seven months from the same period last year, according to statistics from the Ministry of Finance.
The sluggish economic growth has also meant disappointing passenger flows for the country's major airlines. Air China, China Eastern Airlines and China Southern Airlines all forecast their first-half net profits to fall by over 50 percent.
Amid global economic instability and uncertainties, especially the eurozone debt turmoil, China's economy grew 7.6 percent in the second quarter from one year earlier, marking the lowest growth level in more than three years.
As of Friday, the Shanghai stock index had shed nearly 15 percent from its peak this year.
To boost the economy, China has cut benchmark interest rates twice this year, in June and July, respectively, and also lowered the bank reserve requirement ratio in February and May.
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