MNI: China Jan-Feb Ind. Profits Growth Seen Rising

     BEIJING (MNI) - Combined profits at Chinese industrial companies rose 16.1%

year-on-year in the first two months to CNY968.9 billion, the National Bureau of

Statistics said Tuesday. 

     That compared with an increase of 10.8% year-on-year in December 2017. The

bureau didn't release the breakdown for each month separately to avoid any

volatility due to the different dates of Chinese New Year every year.

     Among 41 industries, 29 industries, including most mining and manufacturing

companies, saw their profits rising on a year-on-year basis. 1 industry saw a

flat reading and 11 industries saw profits falling. 

     "The rapid increase in production, as well as sales, has balanced out

rising product prices, which has led to industrial profits growing faster than

in December", said He Ping with Industry Division under the NBS.

     Though at a faster pace than December, growth is still the lowest

year-to-date reading since end-2016's 8.5% as 2017 saw the strongest industrial

profits growth in five years.

     "Along with the supply-side structural reforms going forward, the

industrial economy has displayed a positive change, industrial revenue has kept

a good rising momentum," He said.

     Here are subcategory breakdowns for industrial profits for the first two

months of 2018:

     --State-owned enterprise profits rose 2.96% year-on-year to CNY291.81

billion, compared with 45.1% growth in 2017.

     --Listed companies' profits rose 21.0% year-on-year to CNY682.95 billion,

compared with 23.5% growth in 2017.

     --Mining industry profits rose 42.1% to CNY87.79 billion, compared with a

growth rate of 2.6 times in 2017, much eased from the over-heat growth.

     --Manufacturing industry profits rose 12.5% year-on-year to CNY810.0

billion, compared with 18.2% growth in 2017.

     --Power-production industry profits rose 35.2% year-on-year to CNY75.11

billion, compared with a 10.7% decrease in 2017.

--MNI Beijing Bureau; tel: +86 (10) 8532-5998; email: flora.guo@marketnews.com

--MNI Singapore Bureau; +65 8233 2326; email: Asia-Editor@marketnews.com

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