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Industrial profits up as China’s economy steadies
December 27, 2016, 9:55 am

The rise in industrial profits coupled with the uptick in activity in China's manufacturing sector in recent months shows that economic growth is on target, experts say [Xinhua]

The rise in industrial profits coupled with the uptick in activity in China’s manufacturing sector in recent months shows that economic growth is on target, experts say [Xinhua]


China’s National Bureau of Statistics revealed on Tuesday that the country’s largest industrial firms registered an uptick in profits in November.

The NBS said that the profits of companies with an annual revenue above 20 million yuan ($2.87 million) rose 14.5 per cent year-on-year in November.

This is a rise from 9.8 per cent year-on-year in October.

For 2016, the NBS says that from January to November, industrial profits rose 9.4 per cent.

The rise in profit was largely due to strong sales in the electronics, equipment and oil refining industries.

Meanwhile, reforms continue to enhance China’s leading industries.

As part of the leadership’s supply-side reform strategy, now in it’s second year, industrial capacity and housing inventory has been cut.

Reducing corporate costs and removing “zombie” firms have also helped to combat overcapacity, which has been the bane of China’s industrial development.

In early December, the NBS released data which shows that the economy is picking up pace.

The manufacturing Purchasing Manager’s Index (PMI) rose to 51.7 in November from October’s 51.2, NBS said in its survey tracking the health of some 3,000 large and state-owned companies

The reading is above the neutral 50-point level, signalling an expansion in the manufacturing sector, according to the NBS.

A reading below 50 represents contraction.

This is the fourth consecutive month that the manufacturing PMI has been in growth territory.

The BRICS Post with inputs from Agencies

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