China's industrial profits rose a robust 30.1 percent in the
first ten months, back to their best levels.
Figures from the National Bureau of Statistics (NBS) released on
Wednesday show that the profits of all state companies and
companies with annual sales of over five million yuan reached
1469.7 billion yuan (US$186 billion) in the first ten months.
After two years of high growth between 30 to 40 percent, China's
industrial profits dropped back to a more modest 15-20 percent
increase last year as a result of soaring prices of raw materials
such as coal and oil and surplus production capacity in some
sectors.
China's industrial profits have accelerated this year.
Niu Li, an analyst with the State Information Center, attributed
this year's strong profit growth to booming market demand for
industrial products both at home and overseas as well as high
profits from sectors such as coal, oil mining and non-ferrous metal
refining.
The non-ferrous metals refining sector saw the highest
year-on-year profit growth for any industrial sector at 105.5
percent.
Profits of the petroleum and natural gas mining sector rose 30.4
percent while the petroleum refining and coking sectors saw a net
loss of 46.2 billion yuan due to the high cost of raw
materials.
Chinese private companies reported a profit growth rate of 50.1
percent in the first nine months, more than double their state
counterparts.
According to the statistics, profits at state-owned companies
grew 22 percent in the period and 27.7 percent at overseas-funded
companies.
(Xinhua News Agency November 23, 2006)