Tuesday , December 12 2017

China industrial profits held up in October amid price gains

Bloomberg

Chinese industrial profits maintained their recent surge, underscoring resilience in the economy and strength in producer inflation.
Industrial profits increased 25.1 percent in October from a year earlier, compared with a 27.7 percent pace a month earlier that was the highest in almost six years, the National Bureau of Statistics said on Monday. Profits in the first 10 months of the year climbed 23.3 percent to $946 billion.
“Industrial profits in China remain strong, supported by the significant easing in Chinese monetary conditions in 2016,” said Callum Henderson, a managing director for Asia-Pacific at Eurasia Group in Singapore.
Robust factory inflation has kept mills and plants profitable most of this year, and the authorities’ moves to clean up pollution has benefited stronger firms as smaller competitors shut down.
That boom will be tested by a cooling property market and intensified actions to reduce leverage as the country’s leadership de-emphasises nominal growth targets.
The coal, steel, chemical and oil industries contributed 51.2 percent to the overall industrial profit growth in the first 10 months, the statistics bureau said in a statement.

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