China economy: industrial giants see profits rise over 90 per cent in March

Profits rose to 711.18 billion yuan (US$109.6 billion) in March, up 92.3 per cent from a year ago, when the economy was hard hit by the coronavirus crisis

The industrial profit data covers large firms with annual revenue of over 20 million yuan (US$3 million) from their main operations

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For the January-March period, industrial firms’ profits rose 137 per cent from the same period a year earlier to 1.825 trillion yuan. Photo: AFP

Published: 10:13am, 27 Apr 2021Updated: 10:54am, 27 Apr 2021

Profits at China’s industrial firms grew sharply in March from a low base a year ago, as demand for raw materials surged along with the economic recovery, but the pace of growth slowed, official data showed on Tuesday.

Profits rose to 711.18 billion yuan (US$109.6 billion) in March, up 92.3 per cent from a year ago, when the economy was hard hit by the coronavirus crisis, data from the National Bureau of Statistics (NBS) showed.

The pace of growth slowed from the first two months of the year. Profits grew 179 per cent in January-February compared with the same period in 2020, when coronavirus restrictions disrupted economic activity.

Strong profits in raw materials manufacturing and processing industries, in particular chemicals, metals and petroleum, helped drive overall industrial profit growth as demand picked up, according to a statement from Zhu Hong, an official at the NBS.

For the January-March period, industrial firms’ profits rose 137 per cent from the same period a year earlier to 1.825 trillion yuan (US$281 billion).

China’s gross domestic product quickened sharply in the first quarter and posted a record growth of 18.3 per cent, driven by stronger demand at home and abroad.