RUS | ENG | All
Enter the email or login, that you used for registration.
If you do not remember your password, simply leave this field blank and you will receive a new, along with a link to activate.

Not registered yet?
Welcome!

2017-11-27 20:00:00

CHINA'S INDUSTRY UP

CHINA'S INDUSTRY UP

 

REUTERSChina's industrial firms weathered a broad government crackdown on financial risks as profits continued to surge last month in a stabilizing force for the world's second-biggest economy, which has started to cool slightly in recent months.

The vast industrial sector has been boosted by a year-long, government-led construction spree, helping lift demand and prices for building materials and taking the edge off higher borrowing costs.

Indeed, mining and heavy industry contributed the biggest gains in October, propelling overall industrial profits by 25.1 percent year-on-year to 745.4 billion yuan ($112.94 billion), compared with a 27.7 percent jump in September, the National Bureau of Statistics (NBS) said on Monday.

Despite the modest slowdown, October's growth rate was still the second-highest for a single month this year, and overall profits are on pace to easily top 2016's record 6.88 trillion yuan.

"Apart from very high growth of the coal sector, we have very decent growth in other sectors as well," said Iris Pang, greater China economist at ING in Hong Kong.

"I think this growth will be sustainable, even though...we will have high base effect in coal and steel next year."

The data covers large companies with annual revenue exceeding 20 million yuan from their main businesses.

PRICE IMPACT

More than half of the increase in profits in October came from mining, iron and steel smelting and processing, chemicals, and oil and natural gas extraction, He Ping of the statistics bureau said in an accompanying statement.

The closure of polluting plants and factories have fueled fears of supply shortages in the winter, lifting prices of finished goods including steel and copper products.

The high-price trend has persisted, with domestic iron ore futures prices up over 15 percent since the start of November, while coking coal has risen over 23 percent.

Data earlier in the month showed China's factory prices continued to post strong gains as capacity cuts and anti-pollution measures kept supply in check.

Factory activity, however, has cooled in the past few months. A batch of October data including industrial output, investment and retail sales also undershot expectations, as Beijing's crackdown on financial risks raised borrowing costs, while the tighter pollution rules have shut many factories and mines.

These factors have started to drag on Asia's economic powerhouse, which has defied market expectations with growth of 6.9 percent in the first nine months of the year, supported by the construction boom and robust exports.

Curbs on the property market to fend off speculators are also expected to persist, putting a lid on a range of sectors including construction.

BALANCE SHEET CHALLENGE

Despite the government's focus on reducing corporate leverage, the asset to liability ratio has remained unchanged at 55.7 percent for the last three months, indicating efforts to improve balance sheets at Chinese firms may have stagnated.

Growth in liabilities has also picked up this year. At the end of October, industrial firms' liabilities were 6.7 percent higher than a year earlier, compared with a 6.7 percent increase as of the end of September and 6.3 percent growth for 2016.

Indeed, a Reuters analysis of listed firms shows the debt pile at Chinese corporates continues to climb, with levels at the end of September growing at the fastest pace in four years.

China's stock markets were down in Monday morning trading, as jitters over an effort to improve oversight in the financial industry pulled down companies in the sector, led by a 1.64 percent decline in the Shanghai Stock Exchange's banking index.

-----

Earlier:

 SAUDI'S OIL FOR CHINA
2017, November, 24, 09:15:00

SAUDI'S OIL FOR CHINA

BLOOMBERG - As Saudi Arabia led OPEC’s output cuts this year to shrink a global glut, it’s lost out on market share in the world’s biggest energy consumer. Russia in September retained the top Chinese supplier spot for the seventh straight month, while the kingdom was third.

 

 ADNOC & CNPC COLLABORATION
2017, November, 17, 19:35:00

ADNOC & CNPC COLLABORATION

OGJ - Abu Dhabi National Oil Co. (ADNOC) and China National Petroleum Corp. (CNPC) signed an agreement covering potential collaboration, including potential offshore opportunities and the sour gas development projects.

 

 IEA: GLOBAL ENERGY DEMAND UP BY 30%
2017, November, 15, 15:15:00

IEA: GLOBAL ENERGY DEMAND UP BY 30%

Global energy needs rise more slowly than in the past but still expand by 30% between today and 2040. This is the equivalent of adding another China and India to today’s global demand.

 

 SOUTH CHINA CEA CALM
2017, November, 13, 10:40:00

SOUTH CHINA CEA CALM

Vietnam’s state television said Chinese President Xi Jinping had told Vietnam’s General Secretary Nguyen Phu Trong he wanted to work with Southeast Asian nations on a code of conduct in the sea. China’s Xinhua news agency said China and Vietnam had agreed to properly handle maritime issues and strive to maintain peace and stability.

 

 OPEC: 2040 GLOBAL ENERGY CHANGES
2017, November, 9, 14:00:00

OPEC: 2040 GLOBAL ENERGY CHANGES

Within the grouping of Developing countries, India and China are the two nations with the largest additional energy demand over the forecast period, both in the range of 22–23 mboe/d.

 

 EIA: NUCLEAR ENERGY WILL UP
2017, November, 9, 13:50:00

EIA: NUCLEAR ENERGY WILL UP

EIA projects that global nuclear capacity will grow at an average annual rate of 1.6% from 2016 through 2040, led predominantly by countries outside of the Organization for Economic Cooperation and Development (OECD). EIA expects China to continue leading world nuclear growth, followed by India. This growth is expected to offset declines in nuclear capacity in the United States, Japan, and countries in Europe.

 

 CHINA'S OIL IMPORTS UP TO 11%
2017, November, 7, 12:30:00

CHINA'S OIL IMPORTS UP TO 11%

Crude oil imports by China's independent refineries in eastern Shandong province, Xinhai Petrochemical in Hebei and Fengli Petrochemical in Henan rebounded 11% month on month to around 7.435 million mt in October, or 1.76 million b/d.

Tags: CHINA, INDUSTRY, ENERGY