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Business / China Data

China's industrial profit growth slows in H1

(Xinhua) Updated: 2016-07-27 10:24

BEIJING - Profits of China's major industrial firms rose 6.2 percent year on year in H1, narrowing from a 6.4-percent rise registered in the first five months, official data showed on Wednesday.

Profits at industrial companies with annual revenue of more than 20 million yuan ($3.1 million) totaled 3 trillion yuan in the first six months, the National Bureau of Statistics (NBS) said.

In June, profits of major industrial firms rose 5.1 percent year on year to 616 billion yuan, widening from a 3.7-percent growth posted in May.

He Ping, an official with the NBS Department of Industry, attributed the growth in June to increased sales, a milder decline in factory product prices, lower business costs and destocking.

He noted that the profit growth in June was concentrated in a few sectors, including electronics and petroleum processing.

The profits of petroleum processing jumped 61.9 percent, up 60.7 percentage points from May, while profits of computer communications rose 19.5 percent in June, compared with a 15.1 percent loss in May.

In the first six months, state-owned enterprises' profits fell 8 percent, while those of foreign-invested companies increased 5 percent. Private businesses' profits rose 8.8 percent.

China's economy grew slightly faster than expectations in the second quarter of 2016, stable from the first quarter and fueling hopes that the economy is heading for a steady but slower period of development.

The country's GDP grew 6.7 percent year on year in the second quarter, which remained within the government's targeted range of between 6.5 and 7 percent for 2016.

Meanwhile, industrial output expanded 6.2 percent year on year in June, accelerating from a 6 percent increase in May. Retail sales rose 10.6 percent, a faster expansion from May's 10 percent growth.

 

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