Benefits of Chinese industry suffer first year fall in three years

Benefits of Chinese industry suffer first year fall in three years

The profits of the main Chinese industrial companies decreased 1.8% year-on-year in November, which represents the first negative record in this index since December 2015, according to data published today by the National Statistics Office (ONE).

Earnings reached 594,800 million yuan (86,200 million dollars, 75,840 million euros) in November, which is also a drop compared to the 3.6% growth recorded in October.

This is a figure well below the forecasts of most analysts and is recorded in a period of commercial disputes between China and the United States, since it was not until the beginning of December when Donald Trump and Xi Jinping agreed, during the G20 summit in Argentina, temporarily bury the ax of the trade war they have been holding for months.

In the accumulated of the first eleven months of the year, the sum of profits of the Chinese industrial companies reached 6.17 billion yuan (895.241 million dollars, 784.516 million euros), 11.8% more than in the same period of the previous year.

In the January-October period, profits had increased 13.6% year-on-year.

For the compilation of this indicator, the ONE only takes into account those industrial companies with annual revenues of more than 20 million yuan (2.9 million dollars, 2.54 million euros).

Of the 41 sectors surveyed by the ONE, 29 reported an increase in profits in the first eleven months of the year, with those of the oil sector, steel, construction materials, chemical products and equipment manufacturing as the main contributors.

The industrial companies, on the other hand, managed to reduce their ratio of debt to assets to 56.8% at the end of November, which represents a decrease of 0.4 percentage points compared to the year before.

The ONE He Ping statistic attributed the fall in November to "the slowdown in industrial production and sales and the increase in costs".

In November, Chinese industrial production expanded by 5.4%, five tenths less than the figure reached a month earlier, according to the ONE on 14th.

The figure is also lower than the figure accumulated in the first eleven months of the year, when industrial production increased by 6.3% year-on-year, 0.1 percentage points slower than in the period from January to October.


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