China’s industrial profits grow robustly, seventh straight rise

China’s industrial profits grow robustly, seventh straight rise

BEIJING: Profits at China’s industrial firms grew robustly in November for the seventh month of gains, supported by strong industrial production and sales, as manufacturers continue their recovery from the COVID-19 downturn.

Profits at Chinese industrial enterprises rose 15.5% year-on-year to 729.32 billion yuan ($ 111.50 billion), down from a three-year high of 28.2% in October. of the National Bureau of Statistics Sunday.

The industrial sector in China has seen a strong setback from the shock of the COVID-19 pandemic, aided by a beautiful return on exports as factories push up to meet foreign demand. The price of factory gates, a measure of profitability, fell less than expected last month.

The decline in growth in November was mainly due to a higher base a year earlier, said Zhu Hong, a senior statistician at the Bureau of Statistics.

‘Profits at some traditional industries have improved. “With the advent of the heating season, the demand for thermal coal has risen and prices have increased, leading to an accelerated recovery in the coal sector,” Zhu said in a statement.

Profits from the coal industry rose by 9.1% in November, the first increase this year.

“Operating profits are expected to maintain double-digit growth over the next few months, driven by low base bonds, domestic economic recovery, improvement in overseas demand and the recovery of commodity prices benefiting the upstream sector,” said China Everbright analyst Zhou Maohua. , said Bank.

For the period January-November, the profit of industrial enterprises increased by 2.4% from a year earlier, accelerating from the 0.7% profit recorded for the first ten months.

Earnings at China’s state-owned industrial enterprises fell by 4.9% for January-November, down from the 7.5% decline in the first ten months.

Private sector profits grew by 1.8% in January-November, compared with 1.1% in January-October.

The operating profit data covers large enterprises with an annual revenue of more than 20 million yuan from their main operations.

($ 1 = 6.5408 Chinese yuan renminbi)

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