China's industrial profit drops 2.9% y-o-y from Jan to Oct, within expectations: expert

Source:Global Times Published: 2019/11/27 12:42:56

Photo: VCG


Official data on Wednesday showed that China's industrial companies above a designated scale saw profits drop 2.9 percent year-on-year from January to October. Experts and statisticians say that this drop falls within expectations amid China's challenging phase of industrial upgrading and a gloomy global investment environment.

China's industrial companies above the designated scale recorded profits of 5 trillion yuan ($713 billion) from January to October, down 2.9 percent year-on-year, up 0.8 percentage points compared with the figure from January to September, according to a statement released by China's National Bureau of Statistics (NBS).

China's high-tech manufacturing industry saw a faster growth in profits, recording 7.5 percent year-on-year from January to October, and strategic emerging industries recorded 5.3 percent growth year-on-year during the same period, Zhu Hong, a senior NBS statistician, said in the statement.

Private firms recorded stable profit growth from January to October, at 5.3 percent year-on-year, and small and medium-sized enterprises grew at 8.8 percent year-on-year in the same respect, Zhu said.

During the same period, foreign firms saw profits drop 4 percent year-on-year, 0.2 percentage points lower than the figure from January to September, according to Zhu.

Cong Yi, a professor at the Tianjin University of Finance and Economics, told the Global Times that the decreased figure fell within expectations, considering the global economy is under downward pressure and China is in the midst of a tough phase of industrial upgrading.

Faster growth in high-tech manufacturing and other industries shows that the new driving forces of China's economy have taken effect, Cong said, while traditional driving forces are slowing.

With regard to foreign firms' decreasing profit, Cong noted that traditional foreign investment in China is also going through a process of industrial upgrading and sections of traditional manufacturing have had to relocate, while China's huge market, by contrast, maintains great appeal for foreign investment in high-tech and emerging industries.

Global Times



Posted in: INDUSTRIES,ECONOMY,BIZ FOCUS

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