A series of China's industrial figures published
by the National Bureau of Statistics (NBS) include four highlights,
according to sources at Economic Information Daily.
The four highlights are:
1. Self financing is the most important factor to drive profits growth.
China's industrial profits swelled 42.1 percent from last year's figure to
902.6 billion yuan (US$119.08 billion) in the first five months of this year.
So far in 2007, a total of 4.03 trillion yuan has been invested in urban
areas, up 23.7 percent year on year.
From January to May this year, capital raised via self financing, overseas
capital, and domestic loans grew 29.2 percent, 16.6 percent and 14.1 percent
respectively year on year.
Baoliang, chief economist of the Department of Economic Forecast of the State
Information Center, said that self financing is the most important factor in the
growth of enterprise profits.
The shift in enterprise financing means that the government must use new
macroeconomic control measures to cool down investment growth in addition to its
current monetary policies, which are used to tighten credits.
2. Due to the growing gap between heavy and light industries, the situation
is not conducive to saving energy and reducing the emission of pollutants.
Fixed assets investment in urban areas surged 25.9 percent
year-on-year to 3,204.5 billion yuan between January and May.
The rapid growth was mostly due to surging investment in energy intensive and
real estate sectors.
The growth rates of heavy industries are far higher than those of light
industries. The added value of heavy industries in May increased by 18.89
percent, or 1.89 billion yuan, from the same month a year earlier, while the
added value of light industries in the month grew 15.9 percent year on year,
signaling heavy industries were the major contributors to investment growth.
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