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Industrial sector's profit picture brightens

By Chen Jia | China Daily | Updated: 2013-08-27 23:46

Net income of companies up 11.6% in July

Industrial companies' net income jumped 11.6 percent year-on-year in July, almost double the pace of 6.3 percent in June, adding further evidence of economic stabilization in China, the National Bureau of Statistics said on Tuesday.

Industrial companies with annual sales from their core business exceeding 20 million yuan ($3.2 million) achieved total profit of 3 trillion yuan from January to July, up 11.1 percent. The rate was unchanged from the first six months, the NBS said.

Industrial sector's profit picture brightens

A worker polishes stainless steel wire rods at a specialty steel plant in Dalian, Liaoning province. The National Bureau of Statistics said on Tuesday that industrial enterprises with annual sales exceeding 20 million yuan ($3.2 million) achieved total profit of 3 trillion yuan from January to July, up 11.1 percent year-on-year. LIU DEBIN / FOR CHINA DAILY

But sales growth slowed in the first seven months to 11 percent, from 11.4 percent in the first half.

"The pickup in industrial profit growth in July is another piece of good news," said Zhu Haibin, chief economist in China with JPMorgan Chase & Co.

He cited other indicators for July, such as industrial output and exports, both of which improved from the first half as domestic demand firmed and fine-tuning by the government began to take effect.

Vice-Minister of Finance Zhu Guangyao said on Tuesday that China will maintain a stable macroeconomic policy, and he said there's no need to launch any further stimulus, even though the domestic and external environment remains tough overall.

The nation's ongoing economic structural adjustment is able to support growth, Zhu said.

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