2015-06-29

Industrial Profits Bifurcating Too; Coastal Regions Quick to Reform See Results

It's not only real estate, industrial profits are bifurcating too.

Reuters: China's May industrial profits edge up 0.6 pct on year
China's industrial profits edged up 0.6 percent in May from a year earlier, the National Bureau of Statistics said on Sunday, slowing from a 2.6 percent rise in April and adding to pressures on the government to step up policy stimulus to support growth.

The bureau said industrial firms still faced weak demand and falling prices, although recent interest rate cuts helped lower costs. April's rise in profits had been the first since last September.

...Profits in the mining sector fell 59.8 percent in the first five months from a year earlier, while earnings of crude oil and natural gas producers tumbled 69.5 percent.

Profits of chemical firms rose 12.6 percent and those of makers of computers and telecommunications equipment rose 24.3 percent, the bureau said.
Bad news for the northeast.

The Chinese article says early benefits are coming to early reformers.

Yicai: 5月工业利润分化继续 早改革者已早受益
Peng Peng also pointed out that the coastal provinces in transition early, benefit relatively early. After the upgrade, the coastal provinces also gradually reduce its dependence on energy resources, the quality of growth has been increasing. "Investment direction on the one hand, the coast is constantly adjusted, mainly for strategic emerging industries, infrastructure and other areas of people's livelihood and social sectors. On the other hand, after the transformation and upgrading the overall quality is also rising."

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