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China’s industrial profit growth speeds up

Updated: Aug 27,2016 11:47 AM     Xinhua

BEIJING — Profits of China’s major industrial firms rose 6.9 percent year on year in the first seven months of 2016, accelerating from the 6.2-percent rise registered in the first half, official data showed on Aug 27.

Total profits of industrial companies with annual revenues of more than 20 million yuan ($3 million) reached 3.52 trillion yuan during the January-July period, the National Bureau of Statistics (NBS) said in a statement.

In July alone, their profits surged 11 percent to 523 billion yuan, the second highest monthly growth this year and much faster than the increase of 5.1 percent in June.

He Ping, an official with the NBS Department of Industrial Statistics, attributed the strong growth in July partly to dropping cost, commodity price rebounds and a relatively low comparison base.

Last month, the average cost of those companies was 86.08 yuan for each 100 yuan of main business revenue, down 0.42 yuan from July 2015, the data showed.

He added the prices of ferrous and non-ferrous metal products rebounded recently due to changing market conditions, resulting in profit surges in those sectors.

The ferrous metal making and processing sector saw a profit of 14.83 billion yuan in July, compared with a loss of 1.39 billion yuan in July 2015. Profit of the non-ferrous metal processing sector climbed by 6 billion yuan from a year ago.

The two sectors contributed to 47.5 percent of the total profit growth of industrial companies tracked by the NBS, according to He.