Official statistics released on Saturday revealed that China's industrial earnings increased quicker in June despite firms facing a slowdown in consumer mood amidst an uncertain economic rebound.
According to National Bureau of Statistics (NBS) statistics, profits increased 3.6% year over year last month, after rising 0.7% in May. First-half earnings increased 3.5%, faster than the 3.4% growth in the January-May period.
“Relatively rapid industrial production growth, coupled with a significantly easing in factory-gate price declines since the second quarter, have promoted a stable recovery of corporate revenue,” NBS statistician Wei Ning said in a separate statement.
“Meanwhile, we should also see that insufficient domestic effective demand has constrained the continuous improvement of corporate performance, and the severe and complex international environment has increased the operating pressure of enterprises."
The strong report was in stark contrast to a sluggish economy that failed to meet expectations in the second quarter due to a depressed consumer sector brought on by issues with the labour market and a prolonged housing slump.
Approximately 50% of the ten mainland-listed alcoholic beverage companies that have provided H1 earnings projections anticipated a losing first half.
However, optical transceiver companies Zhongji Innolight and Suzhou TFC Optical Communication anticipate multi-fold increases in first-half earnings despite growing trade tensions with the West. These companies are big winners from a global artificial intelligence build out, and they are suppliers to the U.S. chip giant Nvidia.
In an attempt to support its faltering economy, China is attempting to offer further monetary stimulus, shocking markets on Thursday by announcing an unexpected lending operation at sharply reduced interest rates. A few days prior, the authorities lowered a number of benchmark lending rates following a meeting of the senior leadership that outlined other significant measures.
In order to accelerate a national equipment upgrading and consumer goods trade-in campaign, the nation's state planner and finance ministry announced plans on Thursday to arrange around 300 billion yuan in cash from ultra-long special treasury bonds.
An analysis of the NBS data showed that state-owned businesses reported earnings up 0.3% in the first half, foreign businesses claimed an 11% gain, and private sector businesses booked a 6.8% increase.
Businesses with yearly revenues from their primary activities of at least 20 million yuan ($2.75 million) are included in the industrial profit figures.
(Source:www.asia.nikkei.com)
According to National Bureau of Statistics (NBS) statistics, profits increased 3.6% year over year last month, after rising 0.7% in May. First-half earnings increased 3.5%, faster than the 3.4% growth in the January-May period.
“Relatively rapid industrial production growth, coupled with a significantly easing in factory-gate price declines since the second quarter, have promoted a stable recovery of corporate revenue,” NBS statistician Wei Ning said in a separate statement.
“Meanwhile, we should also see that insufficient domestic effective demand has constrained the continuous improvement of corporate performance, and the severe and complex international environment has increased the operating pressure of enterprises."
The strong report was in stark contrast to a sluggish economy that failed to meet expectations in the second quarter due to a depressed consumer sector brought on by issues with the labour market and a prolonged housing slump.
Approximately 50% of the ten mainland-listed alcoholic beverage companies that have provided H1 earnings projections anticipated a losing first half.
However, optical transceiver companies Zhongji Innolight and Suzhou TFC Optical Communication anticipate multi-fold increases in first-half earnings despite growing trade tensions with the West. These companies are big winners from a global artificial intelligence build out, and they are suppliers to the U.S. chip giant Nvidia.
In an attempt to support its faltering economy, China is attempting to offer further monetary stimulus, shocking markets on Thursday by announcing an unexpected lending operation at sharply reduced interest rates. A few days prior, the authorities lowered a number of benchmark lending rates following a meeting of the senior leadership that outlined other significant measures.
In order to accelerate a national equipment upgrading and consumer goods trade-in campaign, the nation's state planner and finance ministry announced plans on Thursday to arrange around 300 billion yuan in cash from ultra-long special treasury bonds.
An analysis of the NBS data showed that state-owned businesses reported earnings up 0.3% in the first half, foreign businesses claimed an 11% gain, and private sector businesses booked a 6.8% increase.
Businesses with yearly revenues from their primary activities of at least 20 million yuan ($2.75 million) are included in the industrial profit figures.
(Source:www.asia.nikkei.com)
