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China’s Large-Scale Industrial Companies Saw Two Percent Drop in Profit in August

Well-known Chinese news site Sina recently reported that, according to the latest National Bureau of Statistics data, China’s large-scale (officially classified as “Above Designated Size”) industrial companies’ total profit from January to August suffered a year-over-year decline of 1.7 percent. For just the month of August, large-scale industrial companies had a two percent drop in profit, compared to last August. Among these companies, year-over-year, state-held (with controlling stake) companies saw an 8.6 percent profit decline, joint-stock companies had no profit decline or increase, foreign investment based companies suffered a 5.8 percent decline, and privately-owned companies enjoyed a 6.5 percent profit increase. Key industrial segments that saw most of the profit loss are oil, coal, and other fuel processing (-53.1 percent), ferrous metal smelting and rolling processing (-31.3 percent), automobile manufacturing (-19.0 percent), chemical materials and chemical products (-13.1 percent), and textile (-3.4 percent). {Editor’s note: It is very unusual that the National Bureau of Statistics did not release the August profit numbers for state-owned companies this time. Analysts expressed their concerns about a possible unexpected level of profit loss.}

Source: Sina, September 27, 2019