China’s industrial profits rise 14% as global trade improves

Bloomberg

Chinese industrial profits rose 14 percent in April from a year earlier as global trade increased. Industrial profits climbed to 572.8 billion yuan ($83.6 billion) last month, the National Bureau of
Statistics said. That compares
with a jump of 23.8 percent in March, and an 8.5 percent increase last year.
Output in the world’s largest manufacturing nation is booming on the back of stronger global trade and investment, handing producers better pricing power. China’s exporters are capitalizing on the improved demand amid concern that the global economy may slow in the longer term.
“In general, industrial profits still maintain good growth,” the bureau said in a separate statement on its website. Industrial companies’ debt ratio fell to 56.2 percent as of the end of April, down 0.6 of a percentage point from a year earlier, according to the statement.
Industrial profits surged 24.4 percent to 2.28 trillion yuan in the first four months as 38 of 41 industries achieved better profits than last year, according to the bureau. Companies’ financing costs are rising as financial expenses gained 4.2 percent last month year on year, 1.2 percentage points higher than March, it said.
China’s domestic growth outlook faces uncertainties as policy makers try to rein in excessive credit. A surprise cut in China’s debt rating by Moody’s Investors Service last week may coincide with weakening momentum following a better-than-expected
expansion in the first quarter.