Industrial companies report lower net income

Chinese industrial companies earned 2.7 percent less net income during the January-to-July period compared with a year earlier, adding concerns about a further economic slowdown.

In July, the profits of industrial companies in 41 sectors was 366.8 billion yuan ($57.88 billion), down 5.4 percent year-on-year, the fourth consecutive monthly fall, according to the National Bureau of Statistics. The decrease was 1.7 percent in June and 5.3 percent in May.

The statistics bureau said on Monday that industrial companies which make more than 20 million yuan a year from industrial activities accumulatively gained 2.68 trillion yuan in the first seven months.

The country's benchmark stock index fell to 2,061.96, the lowest level in more than three years at the midday break, dropping 1.32 percent in the morning after the NBS published the data, showing investors' concern about the gloomy economic outlook.

Among the 41 sectors, 15 of them saw profit declines from a year earlier, while 25 have increased net income in July.

"This year is a difficult year because both cyclical and structural factors are weighing on the economy and growth recovery," said a research note from Barclays Capital. The company has lowered the growth rate forecast from 8.1 percent to 7.9 percent.

chenjia1@chinadaily.com.cn