MNI DATA IMPACT: China June Industrial Profits Fall 3.1% Y/y

     BEIJING (MNI) - Combined profits made by China's largest industrial

companies fell from a year ago, data released by the National Bureau of

Statistics (NBS) Saturday showed. The following lists a few key points: 

     - Profits of companies tracked by the NBS fell 3.1% y/y after rising 1.1%

in May. Accumulated profits in the first half of half worsened to 2.4% reduction

y/y from the 2.3% decline in Jan-May.

     - Industries including automobiles, petroleum processing and steel, curbed

profit growth by 6.3 percentage points, according to the NBS.

     - Profit of automobile manufacturing in H1 dropped sharply by 24.9% y/y due

to softening demand. Profits made by petroleum processing and the steel sector

decreased by 53.6% and 21.8% respectively due to rising prices of crude oil and

iron ore, NBS senior statistician Zhu Hong said in a statement.

     - New profits in H1 mainly came from industries such as construction

materials, electric power and electrical machinery, which rose 11.9%, 11.5% and

13% y/y respectively.

     - By end-June, the asset/liability ratio of industrial companies was 57%,

falling 0.3 pp from a year earlier. The same ratio of state-owned enterprises

was 58.5%, a decrease of 1.1 pps, according to the NBS.

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

--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com

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