Wednesday, July 28, 2021
HomeBusinessChina industrial profits fall 8.8pc in August, biggest drop in four years

China industrial profits fall 8.8pc in August, biggest drop in four years

Profits earned by Chinese industrial companies declined at the sharpest rate in four years in August as costs kept rising and product prices kept falling, according to official data that adds to signs of weakness in the world`s second largest economy.

Also hurting firms was China`s stock market slump, which cut investment returns while fluctuations of the yuan increased companies` financial expenditures, the National Bureau of Statistics (NBS) said on Monday.

During August, profits of industrial companies dropped 8.8 percent from a year earlier, the biggest on-year fall since the NBS began monitoring such data in 2011.

For the first eight months of 2015, profits were down 1.9 percent from a year earlier, the bureau said.

The NBS said investment returns for industrial companies in August increased from a year earlier by 4.12 billion yuan ($6477 million), compared with July`s 11.04 billion yuan gain.

Financial expenditures of industrial firms` increased by 23.9 percent in August from a year earlier, compared to a 3 percent annual drop in July.

The NBS did not elaborate on such expenditures, though He Ping, an official of its Industry Department, said in a statement accompanying the data “Affected by the fluctuation of renminbi exchange rates, some export-oriented firms saw obvious increase in exchange losses.”

Most Popular

- Advertisment -