Chinese industrial companies’ profits rose for a fourth month last month, adding to signs the country’s economic rebound is gaining momentum.
Net income increased 17.3 percent from a year earlier to 895 billion yuan (US$144 billion), China’s National Bureau of Statistics said yesterday, after a 22.8 percent jump in November last year. Earnings for the full year rose 5.3 percent.
Industrial profits may rise by an average 30 percent this year as the world’s second-biggest economy recovers from a seven-quarter slowdown, businesses start restocking and export demand improves, Standard Chartered PLC forecasts.
Annual industrial profits increased 25.4 percent to 5.56 trillion yuan last year, while sales for the full year rose 11 percent to 91.6 trillion yuan, the bureau said.
Among 41 industry categories covered in the report, 29 saw profits increase, 11 reported declines, and oil refining and nuclear-fuel processing recorded losses.
Earnings of power-generating and supply companies surged 69.1 percent last year as coal prices fell, while the vehicle industry’s profit rose 5.6 percent, the bureau’s data showed.
“This broadly confirms the picture we’re getting from other data that industrial and economic growth is picking up again and the pressure on output prices is diminishing,” said Louis Kuijs, chief China economist at Royal Bank of Scotland PLC in Hong Kong.
“Because of quite weak numbers in the first half of 2102, the profit numbers are likely to show strong year-on-year growth in the coming months,” he added.
China’s economic expansion will be above 8 percent this year the chairman of the nation’s sovereign wealth fund, Lou Jiwei (樓繼偉), said at a forum in Beijing on Saturday.
GDP increased 7.8 percent last year, the least since 1999, according to government data.