CBN丨China's industrial profits begin to rise in June
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CBN丨China's industrial profits begin to rise in June
发布日期:2022-11-22 06:51    点击次数:91


Hi everyone. I’m Stephanie LI.


Coming up on today’s program.


Chinese industrial enterprises’ profits in H1 2022 hit 4.27 trillion yuan, up 1% year-on-year;

IMF lowers global economy growth forecast to 3.2%.

Here’s what you need to know about China in the past 24 hours 


Profits at China's industrial firms bounced back to growth in June, bolstered by the resumption of activity in major manufacturing hubs.

Profits in June grew 0.8 percent from a year earlier, rebounding from a 6.5 percent decline in May, helped by a recovery in industrial and supply chains from disruptions caused by the pandemic, according to data released by the National Bureau of Statistics (NBS) on Wednesday.

Industrial firms saw their combined profits rise 1 percent to 4.27 trillion yuan in January-June from the same period a year earlier. That matched the 1 percent growth pace in the first five months, the data showed. 

Among the 41 industries surveyed, 15 sectors saw double-digit growth in June, and 21 sectors recorded a year-on-year increase in profits.

Notably, profits of auto producers jumped 47.7 percent as production resumed in the major auto manufacturing hubs of Shanghai and northeastern Jilin province, with the sector being the biggest driver of the profit rebound among industrial firms. 

NBS data showed profits at equipment manufacturing grew 4.1 percent in June after a 9 percent decline in May, contributing 4 percentage points to the profits growth in June.

The profit rebound was encouraging, but profit growth remained weak and the external environment was becoming more complicated and grim, NBS senior statistician Zhu Hong said in a statement. "While costs keep rising, some firms are facing hardship in production and operation as well as potential losses.”

For instance, foreign industrial businesses saw profits drop by 13.9 percent during the January-to-June period from a year earlier, only slightly better than a decrease of 16.1 percent recorded in the first five months. 

Profits at private firms fell by 3.3 percent in the first half of the year, a larger margin than the decline in the January-to-May period. 

In the next step, the country will continue to implement existing policies on stabilising the industrial economy. More efforts will also be made to expand effective investment, boost consumption, reduce taxes and fees, ease burdens on enterprises and create more favourable conditions for the steady recovery of the industrial economy.  










The International Monetary Fund (IMF) on Tuesday slashed the global growth forecast for 2022 to 3.2 percent, down by 0.4 percentage point from the April projection, according to its newly released update to the World Economic Outlook (WEO). Global inflation has been revised up due to food and energy prices and is anticipated to reach 6.6 percent in advanced economies and 9.5 percent in emerging markets and developing economies this year, according to the  update.


Moving on to regional highlights


Shanghai has announced its first relief policy for more than 500,000 troubled business owners, who account for 15.7 percent of the city's market entities, to reduce their production and operation costs and improve their business environment. Local authorities announced 34 measures to reduce the companies' costs, including tax incentives, rental reductions and utility subsidies, as well as enhanced credit allocation for SMEs. 


Greater Bay Area, Greater future


As the US' push for "decoupling" with China brings about monumental political risks for US-listed Chinese mainland firms, Hong Kong hopes to adjust some stock market rules to make it more convenient for the return of these companies, Hong Kong’s Financial Secretary Paul Chan Mo-po said on Tuesday. Chan said that more than 20 US-listed mainland companies are returning to Hong Kong, accounting for over 70 percent of the total capitalization of Chinese mainland firms trading in the US. 


Sustainable financial investment in the Greater Bay Area is expected to reach $450 billion by 2030, benefiting from the dramatic increase in two-way capital flows between China and other countries, rapid development of technological innovation and the focus on sustainability, said Nicolas Aguzin, chief executive of Hong Kong Exchanges and Clearing at a Tuesday capital markets seminar. 


Next on industry and company news


The Civil Aviation Administration of China on Tuesday gave the approval certificate to Aviation Industry Corp of China's Harbin Aircraft Industry for the AC352, also known as the Z-15, marking the success of China’s first civil helicopter's research, development and test flights, which is ready for mass production and delivery to users, and clearing the co妹妹ercial operations. 


Shares of Chinese developers extended a rally on the news that the China Real Estate Association was holding meetings in Hangzhou to address the property sector's liquidity issues. State-owned asset management firm China Cinda Asset Management was said to be among the invitees. The conference was reportedly being held Tuesday and Wednesday with the China Real Estate Association saying that discussions would be on financing programs for embattled developers.


Chinese retailer MINISO has claimed Wednesday that the short seller report released by Blue Orca Capital recently was misleading, after the investment firm alleged that MINISO lied about its core business model. The company is reviewing the allegations and considering the appropriate course of action to protect the interests of all shareholders, according to its filing to the Hong Kong Stock Exchange.

名创优品回应做空报告:7月27日,名创优品在港交所宣布看护书记,称做空机构Blue Orca Capital一份做空报告的控诉毫无根据,且包孕无关公司材料的误导性结论及解释。公司董事会正在查看该控诉,并推敲给与适合行为以呵护全体股东的利益。

The China Basketball Association said Wednesday that it is going after 406 million yuan in compensation from video-sharing platform Bilibili for alleged copyright infringement, making it the largest intellectual property case in China's sports industry. The CBA is suing Bilibili for its on-demand provision of the 2019-2020 basketball season without permission, according to a document recently released by the Beijing High People's Court. 


Chinese artificial intelligence giant SenseTime and vehicle manufacturer Guangdong Automobile Group are linking arms on smart autos and the first models will start to become available as early as this year, media reported Tuesday. The two parties will cooperate on research and application in fields such as intelligent driving, automobile metaverse, AI toolchain and other areas, SenseTime said. 


China's competitive gaming industry, also known as esports, will lack at least two million talents over the next three to four years due to accelerating development, Hou Miao, deputy general manager of Tencent Interactive Entertainment Group's marketing department, said in an interview on Tuesday. Tencent Esports has joined hands with some educational institutions on textbooks and provided training facilities to partners, Hou added.


Earnings reports express


Shares in Chinese contract drugmaker WuXi Apptec Co Ltd dropped over 5 percent today despite posting a stellar first-half result late Tuesday. Income for the first six months was about 17.7 billion yuan, showing an increase of 68.5 percent from a year earlier. Net profit jumped 73.3 percent to hit 4.6 billion yuan, the firm said. 


Switching gears to financial news


China will launch a pilot program to streamline the panda bond registration and issuance mechanism in a bid to further open the country's bond market, according to a notice released by the National Association of Financial Market Institutional Investors on Tuesday. As part of the pilot program, which will take effect on Aug. 1, the issuer base for universal registration will be expanded. The association will also introduce a frequent issuer program to facilitate issuances by overseas entities and reduce repetitive disclosure. 


The cost to borrow in China's overnight repo market once fell below 1 percent on Wednesday, down 94 basis points this month, showing that excess cash is piling up in the financial system instead of being funneled to the real economy.


Wrapping up with a quick look at the stock market


Chinese stocks closed slightly lower on Wednesday as caution kicked in ahead of the U.S. Federal Reserve’s policy meeting later in the day. By the market close, the Shanghai Composite slipped 0.05 percent and the Shenzhen Component closed down 0.07 percent. In Hong Kong, the benchmark Hang Seng ended 1.13 percent lower, dragged by mainland developers, while the TECH Index fell 1.3 percent.


Biz Word of the Day


The overnight rate is the interest rate at which a depository institution (generally banks) lends or borrows funds from another depository institution in the overnight market. 


Executive Editor: Sonia YU

Editor: LI Yanxia

Host: Stephanie LI

Writer: Stephanie LI, JIA Yuxiao, ZENG Libin 

Sound Editor: ZENG Libin

Graphic Designer: ZHENG Wenjing, LIAO Yuanni

Produced by 21st Century Business Herald Dept. of Overseas News.

Presented by SFC

编委:  于晓娜






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