-
Advertorial
-
FOCUS
-
Guide
-
Lifestyle
-
Tech and Vogue
-
TechandScience
-
CHTF Special
-
Nanhan
-
Futian Today
-
Hit Bravo
-
Special Report
-
Junior Journalist Program
-
World Economy
-
Opinion
-
Diversions
-
Hotels
-
Movies
-
People
-
Person of the week
-
Weekend
-
Photo Highlights
-
Currency Focus
-
Kaleidoscope
-
Tech and Science
-
News Picks
-
Yes Teens
-
Fun
-
Budding Writers
-
Campus
-
Glamour
-
News
-
Digital Paper
-
Food drink
-
Majors_Forum
-
Speak Shenzhen
-
Business_Markets
-
Shopping
-
Travel
-
Restaurants
-
Hotels
-
Investment
-
Yearend Review
-
In depth
-
Leisure Highlights
-
Sports
-
World
-
QINGDAO TODAY
-
Entertainment
-
Business
-
Markets
-
Culture
-
China
-
Shenzhen
-
Important news
在线翻译:
szdaily -> Business
Industrial profit growth slows to seven-month low
    2017-December-28  08:53    Shenzhen Daily

EARNINGS at China’s industrial firms grew at their slowest pace in seven months in November, as demand and producer price gains eased in further confirmation of ebbing growth in the world’s second-largest economy.

The lower income underscores a delicate balancing act for authorities as they extend a campaign to reduce China’s reliance on credit-intensive investment without imperiling the economy.

Profits in November rose 14.9 percent to 785.8 billion yuan (US$120.05 billion), the National Bureau of Statistics said on its website yesterday. It marked the slowest monthly growth rate since April’s 14 percent.

Earnings were pressured in November by a slower pace of price rises compared to previous months, He Ping of the statistics bureau said in a statement along with the data release.

He noted that November’s decline in producer price inflation to 5.8 percent from 6.9 percent in October was one of the biggest of the year.

“Previous price increases were concentrated in upstream industries like coal and steel. Inflation in those areas is slowing, and the transmission of higher prices to downstream industries hasn’t been very strong, which hurts profit margins,” said Ye Bingnan, an economist at BOC International in Beijing.

More than half of the increase in profits in the January-November period came from coal mining and washing, iron and steel smelting and processing, chemicals, and oil and natural gas extraction, the statistic bureau’s He said.

While the industrial sector has enjoyed a year-long construction boom that has fueled demand and prices for building materials in a boost to growth, a government-led battle to clean air and a crackdown on financial risks have started to drag on China’s economy.

Chinese steelmakers in 28 cities have been ordered to curb output between mid-November and mid-March. A campaign to promote clean energy by converting coal to natural gas has also hampered manufacturing activity in northern cities due to insufficient supply and high prices.

For the first eleven months of the year, profits reached 6.875 trillion yuan, up 21.9 percent from the same period and lower than the 23.3-percent annual growth in the January-October period.

Research firm China Beige Book said in a survey out earlier yesterday that with demand strong and prices holding up, Chinese firms continued to ramp up new capacity and production in the fourth quarter. However, it also showed a slowdown in hiring and wages growth in a further sign of slackening economic activity.

Profits earned by China’s State-owned firms increased 46.2 percent to 1.576 trillion yuan in the first eleven months, cooling from a 48.7-percent surge in January-October.

Ye at BOC International said industrial profit growth will likely slow next year.

“We think next year investment growth will slow, specifically real estate and infrastructure investment,” Ye said.(SD-Agencies)

深圳报业集团版权所有, 未经授权禁止复制; Copyright 2010, All Rights Reserved.
Shenzhen Daily E-mail:szdaily@szszd.com.cn