The Strategist

Profits of large industrial enterprises in China rises for the second month in a row

07/27/2020 - 10:11

In June, profits of large industrial enterprises in China rose for the second month in a row amid a gradual recovery from the crisis caused by the pandemic. This is evidenced by the data of the State Statistical Bureau of the PRC.

The combined profit of industrial enterprises with annual revenues in excess of 20 million yuan last month increased 11.5% year-on-year to 666.55 billion yuan ($95.22 billion).

According to Wind’s data, the June earnings growth rate was the highest since March 2019. In May, the increase was 6%.

During the period from January to June of this year, the profit of large industrial enterprises of the PRC decreased by 12.8% compared to the same period last year - to 2.51 trillion yuan. In January-May, the decline was 19.3%.

The profit of state-owned enterprises in China in the first half of the year fell by 28.5% (39.3% in January-May), private - by 8.8% (11% in January-May).

Decrease in profits since the beginning of this year was noted in 31 of 41 industrial sectors, including oil and gas production (by 72.6%), in the steel sector (by 40.3%), in the chemical industry (by 32.2%), non-ferrous metals (29.4%).