China December industrial profits up by 17.3pc on year
BEIJING, Jan 27 — Profits earned by China’s industrial companies rose 17.3 per cent in December from a year earlier to 895.2 billion yuan (RM438 billion), official data showed today, as a fourth-quarter recovery helped offset poorer corporate results in the third.
The data from the National Bureau of Statistics is the latest sign of a gathering rebound in activity in the world’s second-largest economy. The December rise moderated from November’s 22.8 per cent increase but still marked the third-fastest growth last year.
Industrial profits totalled 5.56 trillion yuan in 2012, up 5.3 per cent from a year earlier, China’s National Bureau of Statistics (NBS) said on its website, strengthening from a 3.0 per cent increase in profits in the first eleven months of 2012 versus 2011.
China’s economy grew at 7.9 per cent in the fourth quarter, snapping a streak of seven consecutive quarters of slowdown.
Among 41 sectors surveyed by the bureau, 29 reported rising profits last year, led by a 69 per cent jump for power generation firms, a nearly 21 per cent rise for food processing firms and an 8 per cent rise for electric equipment makers.
But some sectors are still struggling. Profits at steel firms tumbled 37 per cent, while earnings for chemical companies fell 6 per cent.
According to a Reuters poll, analysts predict China’s annual economic growth would rebound a shade to 8.1 per cent this year.
The HSBC flash purchasing managers’ index (PMI), the earliest indicator of China’s industrial activity, saw growth in China’s giant factory sector accelerated to a two-year high in January. — Reuters