Earnings generated by Chinese industrial companies saw a drop in August due to the weak domestic demand and negative impact of the trade war with the United States.
Data released on Friday by the National Bureau of Statistics (NBS) showed a contraction by 2 percent in industrial profits in August from a year earlier to 517.8 billion yuan, compared to a 2.6 percent surge in July.
In fact, the contraction has started since the second half of last year, as the factory gate prices and economic growth slowed down, thereby threatening firms’ profits.
The drop was widely predicted as industrial production growth fell to its weakest level in 17-1/2 years in August and exports plunged.
By the same manner, the producer price index signaled its biggest fall in three years last month.
As from the beginning of 2019 till last month, industrial firms’ profits witnessed a drop by 1.7 percent from a year ago to reach 4.02 trillion yuan.
As of 11:00 GMT, the U.S. dollar was 0.06 percent versus the yuan at 7.1260,
noting that the onshore yuan fell 3.95 percent against the green currency in