Chinese industrial companies earned 2.7% less net income during the January-to-July period compared with a year earlier, adding concerns about a further economic slowdown.

In July, the profits of industrial companies in 41 sectors was CNY366.8 billion (US$57.88 billion), down 5.4% year-on-year, the fourth consecutive monthly fall, according to the National Bureau of Statistics. The decrease was 1.7% in June and 5.3% in May.

The statistics bureau said on August 26 that industrial companies which make more than CNY 20 million a year from industrial activities accumulatively gained CNY 2.68 trillion in the first seven months.

The country´s benchmark stock index fell to 2,061.96, the lowest level in more than three years at the midday break, dropping 1.32% in the morning after the NBS published the data, showing investors´ concern about the gloomy economic outlook.

Among the 41 sectors, 15 of them saw profit declines from a year earlier, while 25 have increased net income in July.

"This year is a difficult year because both cyclical and structural factors are weighing on the economy and growth recovery," said a research note from Barclays Capital. The company has lowered the growth rate forecast from 8.1% to 7.9%.

Source:China Daily