Profits of large industrial enterprises in China rose sharply thanks to a boom in the market of building materials.
Profits of industrial enterprises China to 2016 rose at the fastest rate in three years as the construction boom has caused rally in the market of construction materials from steel to cement, giving companies more flexibility to start to cut huge debts.
Net profit of the largest industrial enterprises in China in 2016 increased by 8.5% compared to the previous year, reported the State statistical office of China.
The data indicate that in 2017 there can be a significant growth of investment in industry, although many analysts still expect overall economic growth of China will slow to about 6.5% this year, compared with 6.7% in 2016
In 2015, the industrial enterprises of China cut profit by 2.3%.
Meanwhile, in December, earnings growth slowed to lowest in a year: 2.3% in annual terms as against 14.5% in November. Weak demand negatively affects financial performance, despite higher prices.
In December, the leading profit of industrial enterprises amounted to 844,4 billion yuan ($122,76 billion), at the end of 2016 at a whole – of 6.88 trillion yuan.
The profits of the coal industry in 2016 increased by 223,6%, ferrous metallurgy – by of 232.3%.
The profits of state-owned companies in China increased last year by 1.7% (less than in the whole country) to 2.3 trillion yuan, said the Ministry of Finance of the PRC. The annual revenue of state-owned companies increased by 2.6% to 45.9 trillion yuan.
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