National Bureau of Statistics recently released industrial enterprise financial data, from January to April, the industrial enterprises above designated size profit rose 6.5 percent first quarter growth rate down 0.9 percentage points. Wherein the profit growth of 4.2% in April, the growth rate down 6.9 percentage points from March.
Fellow Institute of International Finance Bank of China Liang Jing said the industrial profit growth slowed down mainly due to the economic needs of non-core activities and income. In April, investment, consumption, exports growth rate has come down, it is difficult to form a strong support industrial production and sales, the main business revenue grew by 2%, compared with March down 2.6 percentage points. At the same time, non-core activities stimulating effect of income on profits could not be sustained. Enterprise investment income rose 20.4% in March fell 19.8% in April Switch; operating net income increased 56.2%, down 12.1 percentage points from the previous month, investment income and net operating profit contribution of new industry decline.
NBS Secretary Chu Chang industrial efficiency at the He Ping said that investment income from up to down, to profit from the growing role of Zheng also pulled Bianwei negative pull, so that industrial enterprises above designated size profit growth rate down 2.7 percentage points.
　　In addition, Guo Lei, Founder Securities chief macroeconomic analyst noted that in April industrial profits growth fell exist base effect. April 2016 20 working days between 2012 and 2015 were 21 days; days in March this year than the same period last year day. This causes the data in March and April data overestimated underestimated.
Many experts believe that, together, the data efficiency of industrial enterprises released still shows some positive changes. He Ping believes that positive changes mainly in four aspects. First, the April industrial profits continue to follow the growth since the beginning. This year, profits of industrial enterprises each month to maintain growth, falling profits in 2015 changed the situation. Second, high-tech manufacturing profits grew rapidly. January-April, high-tech manufacturing profits rose 21.6%, higher than the growth rate of industrial enterprises above designated size 15.1 percentage points. Third, iron and steel, nonferrous metals and other major raw materials industry profits fell situation has reversed. Fourth, finished goods inventory negative growth. In late April, the industrial enterprises finished goods inventories fell 1.2 percent, the first negative growth in recent years, indicating that companies are easing pressure on the stock, is conducive to future increases its production capacity and production release.
　　Guo Lei said that the recent boom relatively high degree of industry, one is black and non-ferrous metallurgy, the growth rate has been negative to positive, clearly benefited from deflation narrowed, middle high operating rates and prices expected changes; the other is Nongfu food processing and food manufacturing, a slight acceleration from the previous month are contrarian, clearly benefited from the formation of reflation cycle; third is the electrical machinery and equipment manufacturing industry, the growth rate increased by 1.4 percentage points, and fixed asset investment should be new projects high-growth related.
For improving the efficiency of industrial enterprises in the future trend, Liang Jing believed still optimistic about the unspeakable, depends on policy support in the short term. The current economic downward pressure is still large, overcapacity still prominent industrial enterprises have greatly improved profitability difficult. Especially state-owned enterprises, more concentrated in heavy industry and overcapacity in the field, January-April profits fell 7.8%, a decline of 2.1 percentage points last month to expand. Meanwhile, the real estate market, the rise in commodity prices remains uncertain, pre-industrial new profit contribution of more profitable business sustainability is not strong. However, the short-term cost reduction, steady growth policies conducive to the implementation of the business benefits remain stable.