China industrial profits recover in October amid steady economic growth

Industrial profits in China recovered during the first ten months of this year, amid an environment of steady economic growth and revival in producer price inflation.

China’s industrial profits rose 9.8 percent in October from a year earlier to CNY616.1 billion (USD89 billion), data released by the National Bureau of Statistics showed Sunday. That was faster than the 7.7 percent increase in September. Earnings in the first 10 months climbed 8.6 percent to CNY5.26 trillion.

"The recovery in profits is welcome. If sustained, it should somewhat alleviate the need for fast credit growth," Bloomberg reported, citing, Alessandro Theiss, Senior Economist, Oxford Economics Ltd.

Meanwhile, rising profits, coupled with a strong rise in the country’s producer prices will help companies tackle the piling corporate debt. However, the imposition of government rules to cool property market speculation will help alleviate the tepid economic recovery.