(CBN Global) March 28 -- China's industrial enterprises brought to an end seven months of straight profit declines in January and February, posting a 4.8 percent rise in earnings from a year earlier, thanks to private sector gains.
Combined profit was CNY780.71 billion (USD120 billion). The turnaround was due mainly to earnings growth at joint-stock companies, up 6.4 percent; firms in which foreign investors and investors from Hong Kong, Macao and Taiwan have stakes, up 5.6 percent; and private enterprises, up 7.5 percent. Profit at state-owned enterprises slumped 14.5 percent.
According to Dr. He Ping at the industrial department of the National Bureau of Statistics, the recovery is mainly attributable to accelerated industrial product sales growth in China, a slowdown in the decline of industrial producer prices, and increased profits generated by oil processing, electrical machinery and food businesses.
Dr. He Ping also pointed out that profit gains were partly due to a low base in the same period of 2015, when earnings fell 4.2 percent. Compared with results for the same period in 2014, profits gained just 0.4 percent in the January-February period.
Industrial enterprises are included in the calculations if they have operating profit of more than CNY20 million a year.