Trade war" overshadow the profits of Chinese companies[/rtl]
[rtl]Release date:: 2019/10/27 11:24 • 71 times read[/rtl]
Industrial profits in China contracted for a second consecutive month in September as producer prices continued to fall, highlighting the impact of a slowing economy and a long-running trade war with the United States on corporate results.
Industrial profits fell 5.3 percent from a year earlier in September to 575.6 billion yuan ($ 81.48 billion), compared with a 2 percent decline in August, data from the National Bureau of Statistics (NBS) showed on Sunday.
China's huge industrial sector is under pressure amid trade tensions and Washington and Beijing exchanging tariffs. Profits have slowed significantly since the second half of last year, although the sector has seen some brief rebounds as Beijing boosts support measures, Reuters reported.
The decline in earnings contrasted with a slight improvement in the manufacturing sector in September as factory surveys and better-than-expected industrial production growth indicated an increase in domestic demand.
But factory door delivery, a key indicator of corporate profitability, fell at the fastest pace in more than three years, while economic growth slowed to its lowest level in 30 years in the third quarter.
From January to September, industrial companies' profits were 4.59 trillion yuan, down 2.1 percent year-on-year, worse than the first eight months of a 1.7 percent decline.
Profits of state-owned companies fell 9.6 percent in the first nine months.
Oil, coal and other fuel processing industries were the hardest hit, with profits shrinking 53.5 percent in nine months.