Profits Surge Among Chinese Industrial Giants

Despite Beijing's recent monetary tightening measures, profits at mainland industrial companies jumped 28.7 percent to 2.41 trillion yuan (HK$2.89 trillion) in the first half of this year, reports the South China Morning Post, citing the National Bureau of Statistics.

 

The agency says that a survey of enterprises in 39 industrial sectors, all with annual revenues of more than 20 million yuan, showed net profit growth ranged from 14.5 percent to 47.2 percent.

 

"The strong growth [shows] there is an uneven distribution of the impact of monetary tightening," Societe Generale economist Yao Wei told the Post. "Bigger and state-owned enterprises have easier access to bank borrowing, but smaller firms don't. This is an unhealthy situation."

 

The Post notes that many of the firms surveyed attributed their performance to rising prices and strong demand for commodities and fuel.

 

Some economists anticipate the growth in industrial profits will taper off. "The impact of the tightening will be more obvious in the remaining half of the year," Yao told the Post.

 

 

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