China’s industrial profits increase 14% as global trade improves

HONG KONG: Chinese industrial profits rose 14% in April from a year earlier as global trade increased.

Industrial profits climbed to 572.8 billion yuan (US$83.6bil) last month, the National Bureau of Statistics said.

That compares with a jump of 23.8% in March, and an 8.5% increase last year.

Output in the world’s largest manufacturing nation is booming on the back of stronger global trade and investment, handing producers better pricing power.

China’s exporters are capitalising on the improved demand amid concern that the global economy may slow in the longer term.

“In general, industrial profits still maintain good growth,” the bureau said in a separate statement on its website.

Industrial companies’ debt ratio fell to 56.2% as of the end of April, down 0.6 of a percentage point from a year earlier, according to the statement.

Industrial profits surged 24.4% to 2.28 trillion yuan in the first four months as 38 of 41 industries achieved better profits than last year, according to the bureau.

Companies’ financing costs are rising as financial expenses gained 4.2% last month year on year, 1.2 percentage points higher than March, it said.

China’s domestic growth outlook faces uncertainties as policy makers try to rein in excessive credit.

A surprise cut in China’s debt rating by Moody’s Investors Service last week may coincide with weakening momentum following a better-than-expected expansion in the first quarter. – Bloomberg

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