News Summary: Profits of Chinese firms drop

AP News
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Posted: Jul 18, 2012 3:57 PM
News Summary: Profits of Chinese firms drop

WEAK OUTLOOK: Some of China's biggest corporate names, from tech giants to airlines to retailers, are warning of unexpectedly sharp drops in profit of up to 80 percent.

IMPACT ON GOVERNMENT: Declining results for businesses add to pressure on Beijing to reverse a painful economic slump, the deepest slowdown since the 2008 global financial crisis.

UNCERTAINTY: Forecasters say the slowdown might have bottomed out after growth fell to a three-year low of 7.6 percent in the second quarter, but the timing and strength of a rebound are uncertain.