China’s industrial firms restoring strength, pressure remains

29 March, 2016 12:00 AM printer

BEIJING: China’s latest profit data reveals it is making progress in restoring and upgrading its industrial firms, but they have not fully recovered yet.
Profits at major industrial companies rose 4.8 percent year on year in the first two months of 2016, ending a seven-month dropping streak, official data showed Sunday, reports Xinhua.
China’s industrial sector is grappling with a lingering glut, flagging trade and a large group of “zombie companies” that can only survive on government aid as the economy lost steam. To help the industry weather the downturn, authorities have cut interest rates, reduced taxes, slashed overcapacity and initiated reforms to improve efficiency.