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China's industrial profits achieved a sustained recovery in June with accelerated growth as the implementation of macroeconomic policies took effect,
MKS sports the National Bureau of Statistics (NBS) announced on Saturday.
Data from the NBS revealed that the total profits of industrial enterprises with annual revenue of at least 20 million yuan ($2.8 million) increased 3.6 percent year-on-year in June to 756.65 billion yuan, after a rise of 0.7 percent in May.
In the first half, industrial profits increased 3.5 percent year-on-year, accelerating from a rise of 3.4 percent in the January-May period.
NBS statistician Yu Weining said that relatively rapid industrial production growth, coupled with a significantly easing in factory-gate price declines from the second quarter onward, promoted a stable recovery of corporate revenue.
Among the 41 industrial categories monitored by the bureau, 32 industries saw year-on-year profit growth in the first half, representing 78 percent of all industries and maintaining neutrality compared with the January-May period.
The data showed an increase in the profitability of industrial enterprises amid an overall economic recovery. The growth of industrial enterprises remained stable overall, evident in traditional sectors as well as the emergence of new industries, showcasing the diversity and resilience of China's economic structure, Zhu Keli, founding director of the China Institute of New Economy, told the Global Times on Saturday.
Profit growth in the equipment manufacturing and consumer goods manufacturing industries was especially remarkable, indicating changes in market demand and improvements in the industrial structure.
"The rapid expansion of equipment production can be attributed to the shift toward high-end, intelligent and environmentally friendly production, whereas the growth in consumer goods manufacturing is closely linked to the recovery of domestic consumption and the accelerated increase in exports of industrial products," Zhu said.
In the first half, the profits of the equipment manufacturing industry increased by 6.6 percent year-on-year, contributing 2.2 percentage points to the country's overall growth in industrial profits and accounting for more than 60 percent of the profit growth of industrial enterprises, according to the NBS.
High-tech products including smartphones, integrated circuits and new-energy vehicles saw rapid production and sales growth, driving profits in the electronics sector up by 24 percent and in the auto sector by 10.7 percent.
The competitiveness of the shipbuilding industry improved significantly, with a rapid growth in orders driving a 36 percent increase in profits in the transportation equipment sector, according to the NBS.
Despite the relatively steady recovery of industrial profits, uncertainty remains over an overall economic recovery, underscoring the importance of ongoing monitoring of industry dynamics to ensure a stable growth, Zhu noted. The foundation for improving industrial enterprises' efficiency must be strengthened, as insufficient domestic demand and the complexities of the international environment continue to pose challenges for businesses.
"It is crucial to persist in implementing relevant policies that focus on expanding domestic demand and fostering the high-quality development of the industrial economy," Zhu said.
China is rolling out new policies and measures aimed at supporting the economic recovery. This includes the National Development and Reform Commission and the Ministry of Finance issuing guidelines on Thursday to encourage the replacement of large-scale industrial equipment and older consumer goods with new, more efficient versions. The program, which totals 300 billion yuan, will be financed through the sale of ultra-long-term special government bonds.
Global Times
