Profits at China’s industrial companies rose 28.3% year-on-year in the first half, Bloomberg reported. The National Bureau of Statistics reported a aggregate profits of US$380 billion for the country’s industrial companies. Commodity prices, which have fallen since April, may have been a factor in the profit rise. Also contributing to the increase was the trend of manufacturers moving investment to inland areas with cheaper labor, and continued government spending on public housing and infrastructure projects. The bureau’s data covers companies with annual sales of at least US$3.1 million across 39 industries. While demand for Chinese exports may weaken as the recovery in US and European markets falter, the higher profit figures should help sustain investment and contribute to a “soft landing” for a Chinese economy. The economy as a whole grew by 9.5% in the second quarter, though several analysts have reduced forecasts for 2011 overall to 9%.
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