BEIJING (Reuters) – Profits at Chinese industrial firms grew strongly in November for a seven-month profit, supported by strong industrial production and sales, while manufacturers continued to grow recovery from COVID-19 depletion.
Profits at Chinese industrial companies rose 15.5% from a year earlier to 729.32 billion Yuan ($ 111.50 billion), down from 28.2% three-year-old in October, data from the National Bureau of Statistics showed on Sunday.
China’s industrial sector has bounced back strongly from the panic of the COVID-19 pandemic, backed by a dramatic export rebound as factories rise to meet overseas demand. Factory gate prices, a measure for profit, fell lower than expected last month.
Growth was reversed in November largely due to a higher base a year earlier, said Zhu Hong, a senior statistician at the Bureau of Statistics.
“Some traditional businesses have developed profits. With the heating season, demand for thermal coal has gone up and prices have gone up, leading to an accelerated rise in the coal sector, ”Zhu said in a statement.
Coal industry profits rose 9.1% in November, the first increase this year.
“Business profits are expected to maintain double-digit growth over the coming months, driven by low core impacts, domestic economic recovery, developments in foreign demand and the reversal in commodity prices. which is beneficial for the above sector, ”said China Everbright Bank analyst Zhou Maohua.
In the January-November period, business company profits rose 2.4% from a year earlier, accelerating from the 0.7% gain recorded for the first 10 months.
The gains of state-owned business firms were down 4.9% for January-November, narrowing from the 7.5% decline in the first 10 months.
Private sector profits grew 1.8% in the January-November period, up from 1.1% in January-October.
The business profit data covers large companies with annual revenues of more than 20 million Yuan from their main operations.
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