MNI DATA IMPACT: China April Ind Profits Fell Sharply By -3.7%

     BEIJING (MNI) - Combined profits at China's largest industrial companies

fell sharply from March's 8-month high and into negative territory in April.

Here are the major takeaways from data by the National Bureau of Statistics

(NBS) released on Monday. 

     - Profits made by the companies tracked by the NBS fell 3.7% y/y from the

13.9% gain posted in March. Accumulated profits for the first four months

dropped 3.4% y/y, compared to the 3.3% decline in Jan-March.

     - The implementation of VAT cuts starting from April 1 prompted many

business to ramp up production in March, leading to a reduction of demand in

April, according to the NBS which added that the high base in the same period

last year also dampened April profit growth.

     - Profit losses by steel, petroleum processing and chemical companies for

the first fourth months were a respective 28.1%, 50.2% and 16.0%, narrowing

losses in Jan-March by 16.4, 4.3 and 1.8 pps, the NBS said.

     - The oil exploration industry saw profit growth of 19.7% y/y from Jan to

April, accelerating 9.4 pps from Jan-March, the NBS said.

     - About 66% of the sectors surveyed saw profit gains for the first four

months, including tobacco in addition to wine, beverage and refined tea

manufacturing, electrical machinery and equipment manufacturing, according to

the NBS.

--MNI Beijing Bureau; +86 (10) 8532-5998; email: wanxia.lin@marketnews.com

--MNI Sydney Bureau; +61 405322399; email: lachlan.colquhoun.ext@marketnews.com

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