Chinese industrial firms' profits down 2.7% in first quarter

Profits earned by Chinese industrial firms fell 2.7% in the first quarter to RMB1.25 trillion (US$201.1 billion), Reuters reported, citing data from the National Bureau of Statistics. March saw a drop of 0.4%, with the bureau attributing the narrower decline last month to a deeper fall in commodity prices and lower financing costs after the People’s Bank of China cut interest rates. “Despite the narrowed decline in profits, the operational situation of industrial enterprises remained grave,” said He Ping, an official at the bureau, adding sluggish demand and falling product prices had pressured earnings.