The main Chinese industrial companies increase their profits

27/07/2018

 

The global economic tensions seem not to affect the Chinese industry, which increases its turnover

 

According to data from the National Bureau of Statistics (NBS), profit growth of China’s major industrial firms picked up in the first half (H1) of 2018. Profits at the industrial firms grew 17.2 percent in the Jan-June period.

According to the data, the Chinese economy is bound to achieve high quality development goals. Suffice it to say that in the month of June only, combined profits at industrial companies with annual revenue of more than 20 million yuan went up 20 percent year-on-year.

 

Profits at the industrial firms grew 17.2 percent in the Jan-June period

 

The data shown by the National Bureau of Statistics focus in particular on the month of June. According to these data, combined profits at industrial companies with annual revenue of more than 20 million yuan (about US$2.95 million) went up 20 percent year-on-year.

NBS statistician He Ping attributed the sound growth to the country’s supply-side structural reforms and, according to He, costs per 100 yuan of revenue from the companies dropped 0.37 yuan from the same period last year to 84.42 yuan.

 

The debt-asset ratios of major industrial firms dropped 0.4 percentage points

 

According to those interviewed by NBS, these new gains are due in particular to the extraction of oil and natural gas, to the metallurgy of ferrous metals and rolling, and to the chemical sectors.

Cheng Shi, chief economist of ICBC International, said that the steady growth reflected the effectiveness of deepening supply-side structural reform: “The reform has galvanized the inherent dynamics of China’s economy, which will serve as useful cushions to adverse external impact”.

 

The International Monetary Fund (IMF) said that: “The Chinese economy continues to perform strongly”

 

“With steady improvement in economic structure and production efficiency, China is breaking new ground for economic development and laying solid foundations for high-quality development in the second half of this year” Cheng noted.

Finally, even the International Monetary Fund (IMF) has confidence in the excellent performance of the Chinese economy, thus confirming China’s economic growth this year at 6.6 percent.

 

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