Banks rake in profits

Corporate banks and urban commercial banks reported faster net profit growth. Industrial Bank, Bank of Beijing, Bank of Ningbo, China Minsheng Banking Corp and Huaxia Bank posted net profit growth of more than 20 percent.

Banks may face more pressure in the future after the recent liquidity squeeze, said analysts.

"Regulators in China view the recent credit crunch as a wakeup call showing that some banks may not be up to the task of coping with sudden changes in credit markets or liquidity shortages," said Frederic Lau, managing director of Promontory Financial Group China.

A total of 348 companies reported net losses, including companies from metal-producing, mining and manufacturing, tourism and catering sectors.

Companies in the hospitality and catering sectors reported negative growth in net profit in the first half of 2013 because of shrinking incomes after the central government released a circular calling for the curbing of extravagance using public money. In 2012 the hospitality and catering sector posted a 17.34 percent increase in net profit in the first half, while in 2013’s first half, the combined net profit of the sector dropped 138.69 percent.

Realty developers posted a combined net profit of more than 44 billion yuan, a more than 30 percent year-on-year increase.

"Despite inventory pressure, the income and net profit of developers may further increase in the second half of 2013 with recovering market conditions and rising prices," said Wu Yinzhou, an analyst with Shanghai Fulun Consultancy.