[Column] China's industrial enterprises profit improvement US shopping season electricity quotient also crazy

Editor's note: This column is compiled from the contents of the Caijing sub-section of the Global News channel of China International Radio, the chief editor of the program is Chengliang and Yin Yu. The program selects the most important global financial events of the year, the first time to carry out a simple analysis, quickly and thoroughly geographical clarity of the background of news events. At the same time, connect the top economists, in-depth information and diverse points of view within the audience to provide insights beyond the superficial information of rational analysis.

The program is broadcast 8:30 every day, broadcast frequency: Beijing FM90.5, Guangdong, Hong Kong, Macao are FM107.1, Tianjin FM90.6, Chongqing FM91.7, Qingdao, Yantai FM89.8, Wuhu FM89.4, Hefei FM90.1.

October Industrial Enterprise profit data strong profit margin rose into an important impetus

Boosted by rising profit margins, the unexpectedly strong profits of industrial companies above the scale of October, released yesterday, further confirm that China's economy is stabilising. The data from the Bureau of Statistics show that the total profit of industrial enterprises in October was 500.1 billion yuan, which increased by 20.5%. 1-October profit also achieved a 0.5% increase, reversing the first 9 months of the downward trend.

Market analysis points out that the rise in profit margin is an important driving force for the improvement of industrial enterprises in recent years. 1-October industrial profits were 5.46%, the highest since the year. This shows that the early purchase of the higher prices of the inventory has been digested, operating costs have been reduced, replenishment inventory needs will begin to rise.

Industrial Bank (601166, shares bar) chief economist Lu County in Wednesday on the Global Radio International Broadcasting, "Morning First News" program, the October industry profits year-on-year growth of 20.5%, mainly because of last year's four-quarter base decline, combined with its main revenue has not increased significantly, Visible enterprise sales and operating environment has not really improved.

However, the operation of various types of enterprises in the past year, there is a clear difference in the performance of state-owned enterprises, the profits of 1-October year-on-year decline of 9.2%, while the private sector has achieved 17% of the profit growth, joint-stock enterprise profits also increased by 2%.

Lu County said that because the business model of state-owned enterprises is to maximize the size of the enterprise, while the private sector is pursuing the maximization of profits, which causes state-owned enterprises and private enterprises to respond to the market with different reactions and behavior, which leads to the recent revenue growth of state-owned enterprises lower than private enterprises

The recent expansion in manufacturing activity and the improvement in industrial business have shown that the government's steady growth measures are showing results. Recently, the National Development and Reform Commission also approved the Fuzhou, Urumqi and other urban rail transit construction projects and planning, the total investment is expected to exceed 75 billion yuan. Market analysis points out that China's economy will continue to recover as more similar investment projects start.

Card handling fee down February next year the traditional shopping season in the U.S. electric business is also crazy

To pay attention to the problem of the banking nurturing the real economy. According to the central bank's notice, the new bank card processing fee standard will be implemented from February 25 next year, the overall rate of credit card rates are significantly lower, between 23% to 24%, of which the catering industry has been cut by as much as 38%.

Although the card processing fees are charged to the merchant, but also partly through the commodity prices passed on to consumers, so the rate cut, consumers are expected to benefit from it. But overall, the impact is not very large, because our bank card charges are relatively low, on average less than 1%, while in the United States, the rate of credit card is as high as 1.5%.

So after the news came out, there are some in the industry complained that the rate reduction will make the bank card business profitability decline, become a unprofitable business. But at present, the bank is mainly in the interest income to earn high profits, the bank card business is very chicken. According to estimates, the adjustment for the banking sector's profit impact in 1.5%, very small.

Since the beginning of the Friday, the United States has entered the most important shopping season of the year. According to tradition, "black Friday" is the holiday of the retail store, and this Monday is the carnival of the electric trader. However, the concept of "black Friday" and "Web Monday" appeared to fade this year, and the online shopping front was getting longer.

From the beginning of thanksgiving to this Monday, the total amount of online shopping in the United States reached 13.7 billion U.S. dollars, an increase of 16%. Statistics show that half of the U.S. shopping season will be spent online this year. It is easy to think of the recent domestic "double 11 online promotions", a one-day retail sales of 19.1 billion yuan, equivalent to about 3 billion U.S. dollars.

Online shopping is hitting traditional retail channels, whether in the US or China, and elsewhere in the world. With more convenient payment, more developed logistics, more sound after the sale, the traditional retail industry will become more and more fragile, but the traditional channels have an unpredictable shopping experience advantage, perhaps the next line under the online who will not completely replace who, change is only a share.

OECD to reduce economic growth in China next year to boost household spending

The Organisation for Economic Cooperation and development, in Tuesday, downgraded China's growth forecasts, saying the eurozone crisis could dampen China's exports in the coming months. The OECD has lowered its forecast for China's growth next year to 8.5%, and this May, it expects China's economy to grow by 9.3% next year.

Britain's third-quarter gross domestic product was up 1% per cent on a month-on-month basis, according to data released by the ONS in Tuesday, in line with market expectations. Among them, the data were strong, with household spending up 0.6% per cent in the three quarter, the biggest increase since the 2010-year two quarter, and the British Bureau of Statistics said it was likely that the Games had boosted household spending significantly.

The first Cross-border index will be launched next month by the Hong Kong and Shenzhen Stock Exchange joint venture company. China Securities and Exchange Services Ltd., jointly established by the Shanghai, Shenzhen and Hong Kong exchanges, announced in Tuesday that it will launch the Chinese trading Services 120 index on December 10, which locates "Chinese assets", which mainly cover mainland companies listed in Hong Kong and mainland listed companies. (Chengliang, Yin Yu)