The FINANCIAL — China’s industrial profits fell 8.8% in August from a year ago, extending July’s 2.9% fall as the slowing economy hit enterprises’ profitability, according to Nasdaq.
The industrial profits for January to August fell 1.9%, compared with the same period last year, according to data released by the National Bureau of Statistics on September 28.
The statistics bureau also noted that some export-oriented enterprises suffered foreign exchange losses as a result of yuan’s depreciation in August, which contributed to increased financial costs.
The volatile domestic stock market also dragged on the industrial profits, the statistics bureau said, adding that income from investment increased 4.1 billion yuan ($643 million) in August on year, 6.9 billion yuan less than in July.
It also added that rising costs, waning demand for industrial products, and a profit slump in the automobile, petroleum and chemical industries also contributed to the profit decline.