Consequently,
Chinese industrial profits continue fall:
The benefits of Chinese industrial companies continued to retreat in June. For example, according to data published on Sunday, while persistent production of production prices accentuates pressure on business margins, on the background of sluggish domestic demand and persistent uncertainties around world trade.
The Chinese economy slowed down less than expected in the second quarter. Similarly, testifying to a certain resilience in the face of American customs duties. However, But fierce price wars between producers have led Beijing to promise a strengthening of regulation in sectors such as automotive. solar panels, where fierce competition is raging.
According to figures from the National Statistics Bureau, the profits of Chinese industrial companies dropped by 4.3 % in June over a year, after a drop of 9.1 % in May. In the first half, the benefits display a decline of 1.8 % against a decrease chinese industrial profits continue fall of 1.1 % over the January-May period.
“Faced with a complex. changing external environment, China must deepen the construction of a” unified national market “, develop and strengthen domestic traffic and promote high -quality industrial development,” said Yu Weining, statistician within the office.
For Lu Zhe. chief economist at SOOOCHOW SECURITIES, industrial profits could improve thanks to the measures taken by China against destructive competition and to the implementation of a program to take over old vehicles, a local version of the “Casse bonus” system, which should limit the price war and stimulate consumer demand.
Deflation at the exit of factories has worsened last month. reaching its lowest level for almost two years, while the weakening of domestic demand accentuates overcapacity problems.
Public car manufacturers Guangzhou Automobile Group. Jac Group anticipate record losses in the second quarter, which will be announced next month.
The Chinese authorities have promised this month chinese industrial profits continue fall to intensify their efforts to regulate aggressive price reductions. fueling speculation on a new wave of industrial capacity reductions.
However. analysts believe that this new phase of reforms on the offer side will not allow China to get out of the deflation as quickly as ten years ago, especially due to challenges such as job cuts.
According to data, public companies recorded a 7.6 % drop in their profits in the first half. Private companies have seen their profits increased by 1.7 % and foreign companies by 2.5 %.
Industrial profits figures concern companies whose annual turnover amounts to at least 20 million yuan ($ 2.8 million) from their main activity.
($ 1 = 7,1561 Chinese renminbi yuan)
Chinese industrial profits continue fall
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