Chinese stocks down after industrial-company profit gains rise
City Index November 27, 2012 4:15 PM
<p>China’s major stock benchmarks are subdued following positive industrial-company profits news.</p>
The major Chinese stock benchmarks closed lower today (November 27th) following news industrial companies' profit gains surged in October, fortifying a bullish outlook for the future of China's businesses and the broader economy.
According to the National Bureau of Statistics, this figure rose by more than 20 per cent on the previous year, pushing industrial firms' overall profits into positive territory for the first time in ten months.
Large industrial companies – or those with an annual income of at least 20 million yuan (£2 million) – reported profits of 500.1 bullion yuan for October, which is 20.5 per cent higher than in October 2011.
In the January-October period, profit for these companies topped 4.02 trillion yuan, which is 0.5 per cent more year on year and reverses a 1.8 per cent year on year decline in the previously-published January-September total.
At close of play in Shanghai this morning, the SSE Composite index was 1.3 per cent lower to 1991.1 points, while the Hong Kong Hang Seng was steady on 21844 points.
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