Inflation and costs curb growth
September 1, 2008 · Print This Article
RISING raw material costs and inflation restrained the profit growth of listed companies on the Chinese mainland in the first half of this year.
Shanghai-listed companies earned a combined 481 billion yuan (US$70.2 billion) in net income in the period, rising 15.85 percent on a yearly basis, much slower than the 69.2-percent growth at the same period a year earlier, according to the Shanghai Stock Exchange.
Revenue for the 863 companies rose 24.98 percent to 4.54 trillion yuan, while costs rose 35.65 percent to 3.98 trillion yuan in the period, the Shanghai bourse said on its Website today.
“Most listed companies kept an upward trend in profit by boosting main business and controlling costs despite hiking material costs and rising inflation,” the bourse said in a statement.
The Shanghai Composite Index tumbled about 50 percent in the first half, equivalent to a 14 billion-yuan loss in market value. Rising raw material costs drove the country’s consumer price index up 7.9 percent in the period.
Stated-owned enterprises controlled by the central government accounted for 83 percent of the combined profit in the period, contributing 67.49 percent to the growth.
The finance industry outperformed other industries as its combined profit accounted for 53.52 percent thanks to the expanded interest spread, intermediate business of banks and decreased tax rates, the statement said.
Meanwhile, 488 companies listed in Shenzhen rose 16.13 percent in net income to 58.72 billion yuan and revenue advanced 23.11 percent to 944 billion yuan, the Shenzhen bourse said in the separate statement.
Source:Xinhua
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