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China industrial profits rise to 626b yuan in May; but will fade as finance costs kick in

With producer price inflation reaching its peak, gains are expected to see attrition later in the year

China's factory inflation eased for the third straight month in May on sagging prices of raw materials, signalling a broader cooling in economic activity as profits are squeezed by slackening domestic demand and rising financing costs.


PROFITS at China's industrial companies surged 16.7 per cent in May from a year earlier, accelerating from April and defying expectations of a slowdown in the face of rising borrowing costs and a cooling property market.

Profits in May rose to 626 billion yuan (S$127.46...