Data released by the National Statistics Bureau on Monday showed that profits at Chinese industrial firms surged 31.5 percent in the first two months of 2017 from a year earlier. Faster rise in the prices of coal, steel and crude oil was seen as the main driver behind the surge in profits. Strong imports also pointed to a pick-up in activity.
Total industrial profits over the first two months of the year were 1.01 trillion yuan ($147 billion), the National Bureau of Statistics said. The pace of profit growth compared to a 2.3 percent increase in December. Liabilities of industrial firms rose 6.6 percent year-on-year as of end-February, according to the statement.
Robust bank lending, a government infrastructure spree and a much-needed resurgence in private investment supported a strong start to 2017. Government outlays were up 17.4 percent in Jan-Feb, fixed-asset investment expanded more than expected, including a 27.3 percent increase in infrastructure spending.
Analysts expect stronger corporate earnings will likely to give a further boost to fixed-asset investment, which quickened early in the year.
The material has been provided by InstaForex Company – www.instaforex.com
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