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China Industrial Profits Decline Again in December

Published 01/28/2019, 12:44 AM
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Investing.com - The profits of Chinese industrial companies fell for a second straight month in December, official data showed on Monday, in the latest sign of cooling in the world’s second-largest economy.

Profits of big industrial companies fell 1.9% on year to 680.83 billion yuan ($100.94 billion) in December, the National Bureau of Statistics reported. Profits of chemical, coal mining and non-ferrous metal sectors all slowed significantly in December, the data showed.

In November, industrial profits declined 1.8% from a year earlier. It was the first contraction in profits in nearly three years.

For the full year of 2018, China's industrial profit rose 10.3% to 6.64 trillion yuan ($986.37 billion), easing from 2017's 21%.

At the end of December, the debt-to-assets ratio of Chinese industrial companies stood at 56.5%, down 0.5% from a year ago.

The Shanghai Composite and the Shenzhen Component traded about 0.2% lower on Monday following the release of the data.

China reported its weakest annual economic growth in 28 years earlier this month. The country’s GDP grew 6.4% in the fourth quarter of 2018 from a year earlier, official data showed on Jan. 20.

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