Profit growth of Chinese factories has slowed down
The profit growth of Chinese industrial enterprises suddenly slowed down in September, as several sectors of the processing industry fell due to not strong activity and the debt growth.
The data from the National Bureau of Statistics for September have demonstrated the complexity of the task, which appeared in front of the officials as the processing sector began to suffer from the weak demand, overcapacity and rapidly growing debts.
The profit of the industrial sector has increased by 7.7 percent in September, reaching 577.1 billion yuan. On Thursday the data from the National Bureau of Statistics showed that the growth had suddenly slowed down after the rising by 19.5 percent in August.
China’s debt has risen to 250 percent of GDP. Bank for International Settlements claimed in September that the banking crisis was threatening to the People’s Republic of China in the next 3 years.
The fresh information has shown some signs of the stability: the increase in GDP in the third quarter is equal to 6.7 per cent as well as in the II quarter, because the growth of government spending together with the boom in the real estate sector have exceeded steadily weak exports.
The total profit of industrial enterprises for the first 9 months of the year has become equal to 4.64 trillion yuan ($ 684.77 billion). It is 8.4 percent higher compared with the same period last year.