Profits growth of China's major
industrial firms continued to accelerate in July, totaling 589.5 billion
yuan (about 85.56 billion U.S. dollars), up by 19.6 percent year on
year, data from the National Bureau of Statistics (NBS) showed on
Thursday.
Monthly profits saw growth for a
third consecutive month in July as the economy continued to recover from
the coronavirus-induced slump.
Notably, profit growth of the
auto industry rose sharply by 125.5 percent in July following a
16.9-percent rise in the previous month, benefiting from sales rebound
and increased investment return.
From January to July, the profit
of major industrial enterprises saw an 8.1-percent year-on-year drop,
the rate of decline narrowed by 4.7 percentage points from the January
to June period.
The profit of the equipment
manufacturing industry increased by 44.3 percent year on year, and the
growth rate was 30.0 percentage points higher than that in June,
according to the NBS.
"Multiple factors including the
switch of environmental protection standards, the drive of
infrastructure investment, and the increase in exports of home
appliances drove the growth," NBS senior statistician Zhu Hong commented
on the accelerated profit growth in the equipment manufacturing
industries lead by automobile and electronics.
Profits of high-tech
manufacturing have surged by 36.5 percent year on year in July, NBS data
showed.
Although the profit growth of
industrial enterprises further accelerated in July, Zhu cautioned about
the uncertainty in future profit growth citing considerable pressure on
corporate cash flow, as well as complex domestic and foreign
environments.
Source: CGTN |