Industrial profits rose 1.4 percent year-on-year in the January-April period, according to data released by the National Bureau of Statistics (NBS). This compared with 0.8 percent growth over the first quarter.
In April alone, profits rose 3 percent versus a 2.6 percent rise a month prior.
“China’s industrial policy priorities look to be working well,” said Dan Wang, Eurasia Group’s China director.
“Commodities involved in new energy and new materials supply chains are doing well, as are those in high-end manufacturing.”
Profits at state-owned enterprises fell 4.4 percent over the first four months, the NBS data showed, while private sector companies and foreign firms enjoyed growth of 4.3 percent and 2.5 percent, respectively.
Industrial profit numbers cover firms with annual revenue of at least RMB20 million from their main operations.
“The foundation for stable profit growth still needs to be strengthened,” Yu Weining, an NBS statistician, said in a note accompanying the data.
“Challenges remain: global uncertainties, insufficient demand and falling prices continue to weigh on the recovery.” (Reuters)
