Sharp increase in factory profit

Investment and rising exports drive rebound, report says

Factory profit rose at the fastest pace in 10 months in October, driven by increasing investment projects at home and export orders.

The National Bureau of Statistics said on Tuesday that large companies (with annual business worth more than 20 million yuan) reported profits of 500.1 billion yuan ($80 billion) in October, a jump of 20.5 percent year-on-year.

In September, the figure was just 7.8 percent, following a minus 6.2 percent in August.

The five months to September saw consecutive losses.

October figures were responsible for a marginal 0.5 percent profit for the 10 months, the bureau reported.

The October figures are a "positive sign," said Liu Yuanchun, deputy dean of the Renmin University of China's School of Economics. "They could send a signal to the government that there is no need for further stimulus, at least in the short term."

Major adjustments in macroeconomic policies are impractical before the annual economic work conference in December, Liu said.

Economic reform is expected to see fresh progress under the new leadership team, Liu said.

October's data are "better than expected," and will boost confidence to speed up investment and production in the coming months, he said.

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