Source: National Bureau of Statistics
Profits at China’s industrial firms expanded at a faster rate in September irrespective of surging prices and supply bottlenecks. CSI 300 Index down -1.31%, CNY USD down -0.16%
- Profits soared 16.3% on-year to reach $115.72 billion, rising higher than the 10.1% gain posted in August.
- The industrial sector has been hampered by the rising coal prices, supply constraints, and power rationing caused by coal shortages due to emission reduction targets.
- Meanwhile, the Chinese government has taken various measures to curb the high metals prices and ease the power crunch in the country, including encouraging coal miners to boost output at industrial plants.
- Solid profit gains in mining and raw materials industries contributed to the rise in the headline figures.
- Profits in the coal mining and washing sector expanded 172.2% over the first nine months.
- At the same time, the fuel processing sector posted a 930% increase in earnings.
- China’s economic growth in the third quarter was the slowest in 2021 due to power crunch and struggles in the property sector.