According to the latest statistics from China, earnings growth of China’s industrial companies eased in July due to hot weather in the country. High temperatures led to disruptions of the production processes.
The profit grew by 16.5% year-on-year in August after a 19.15% increase in June. Earnings of industrial firms advanced by 14% in April and by 8.5% last year.
The overall decrease in profits of the industrial enterprises is also related to a slowdown in China’s economic activity caused by implementation of government measures aimed at reduction of the companies’ debt load and curbing speculative transactions with housing.
The debt-to-equity ratio of China's major industrial companies declined to 55.8% in July from 55.9% in June.
