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China industrial profits drop 2.1% in Oct
November 27, 2014, 5:00 am

Handicraftsmen work in a studio in the Hongshan Subdistrict of Jianping County, northeast China's Liaoning Province, Oct. 22, 2014 [Xinhua]

Handicraftsmen work in a studio in the Hongshan Subdistrict of Jianping County, northeast China’s Liaoning Province, Oct. 22, 2014 [Xinhua]

Sluggish market demand, rising labor costs and dropping product prices saw the profits of Chinese industrial businesses record a drop of 2.1 per cent year on year, hitting 575.47 billion yuan ($94.34 billion) in October, new data released on Thursday said.

Coal mining profits declined 45.2 per cent year on year, showed NBS data.

The total profits of industrial companies during the first ten months reached 4.94 trillion yuan, up 6.7 percent year on year, said National Bureau of Statistics official He Ping.

During the first ten months of 2014, 33 of the 41 sectors surveyed reported year on year profit rises, with eight sectors seeing drops.

Private firms saw relatively stable profit growth at 8.7 percent for January-October. Profits of state-owned enterprises dropped 1.2 per cent year on year in the first ten months.

Companies funded with overseas investment posted the strongest growth in profits during the first ten months, with an increase of 12.6 per cent year on year.

The People’s Bank of China, China’s central bank said yesterday, Beijing will improve its financial policies to cut carbon emissions and curb the flow of capital to high-polluting industries. The US and China announced new targets earlier this month to cut carbon emissions in a bid to halt climate change. Environmental group Greenpeace has welcomed the landmark deal.

NBS’s calculations include companies with annual business revenues exceeding 20 million yuan.

 

TBP and Agencies