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Profits Rise at Industrial Firms
The economic efficiency of China's industrial enterprises showed a significant improvement in the first nine months of the year with profit growth continuing to accelerate, the National Bureau of Statistics said yesterday.

The composite index measuring the economic efficiency of industrial enterprises reached 126.3 points during this period, an increase of 5.6 points compared with the same period last year.

From January to September, China's industrial firms made profits of 380.1 billion yuan (US$45.8 billion), a year-on-year increase of 13.6 percent.

The growth was faster than the 10 percent rise in the first eight months of this year, boosted by strong earnings from producers of chemicals, coal and transport equipment, the bureau said.

Profits in transport equipment firms soared by 11.5 billion yuan (US$1.4 billion) during this period compared with a year ago, while profits by chemical producers rose by 5.6 billion yuan (US$674 million yuan) and coal producers' profits rose by 4.1 billion yuan (US$493 million), the bureau said.

Profits reaped by electronic and telecommunications equipment makers rose by 3 billion yuan (US$361 million) from January to September compared with a year ago, while those by machinery makers climbed 3.9 billion yuan (US$469 million).

"The earnings rise in the five major sectors accounted for 61.8 percent of the increased profits in the whole industrial sector," the bureau said.

The profit growth at Chinese industrial firms has picked up due to accelerated economic growth, driven by strong exports and domestic demand, said Zhang Xueying, a senior economist with the State Information Centre.

China's economy grew a year-on-year 7.9 percent during the first nine months of 2002.

China's economic growth was 7.6 percent in the first quarter, 8.0 per cent in the second quarter and 8.1 percent in the third quarter.

From January to September, State-owned industrial firms and firms where the State holds the majority stake made profits of 178.1 billion yuan (US$21.4 billion), a year-on-year increase of 0.9 percent, reversing a downward trend at the start of the year, the statistics bureau said.

The bureau noted that the net loss suffered by money-losing companies was 89.7 billion yuan (US$10.8 billion) during the period, a decline of 2.1 percent compared with a year ago.

During the period, industrial enterprises also gave 437.7 billion yuan (US$52.7 billion) in taxes to the State, a year-on-year increase of 10.6 percent.

(China Daily October 25, 2002)

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