China Jan-Feb industrial profits surge 32 pct, could boost fixed asset investment

Data released by the National Statistics Bureau on Monday showed that profits at Chinese industrial firms surged 31.5 percent in the first two months of 2017 from a year earlier. Faster rise in the prices of coal, steel and crude oil was seen as the main driver behind the surge in profits. Strong imports also pointed to a pick-up in activity.

Total industrial profits over the first two months of the year were 1.01 trillion yuan ($147 billion), the National Bureau of Statistics said. The pace of profit growth compared to a 2.3 percent increase in December. Liabilities of industrial firms rose 6.6 percent year-on-year as of end-February, according to the statement.

Robust bank lending, a government infrastructure spree and a much-needed resurgence in private investment supported a strong start to 2017. Government outlays were up 17.4 percent in Jan-Feb, fixed-asset investment expanded more than expected, including a 27.3 percent increase in infrastructure spending.

Analysts expect stronger corporate earnings will likely to give a further boost to fixed-asset investment, which quickened early in the year.