China: Both industrial profits and revenue edged up sequentially in August

China's industrial profits increased by 4.9% yoy and revenue rose by 7.4% yoy in August (vs. +11.0% yoy and +6.5% yoy in July). In sequentially adjusted terms, industrial profits rose by 0.6% (vs. -3.1% in July) and revenue rose by 0.8% sa non-annualized (vs. -3.8% in July). On a year-over-year basis, downstream profits rose 0.5% yoy, decelerating from 9.6% yoy in July, while upstream profit growth rose to 19.8% yoy from 12.7% yoy in July, with the main contribution from coal mining and dressing, non-ferrous metal smelting and pressing, and petroleum, coking and nuclear fuels. The NBS noted the electronics sector contributed the most to industrial profit growth in Jan-Aug, followed by the raw materials manufacturing sector. Overall profit margins (total profits divided by revenues) remained largely unchanged in August on a 12-month average basis, while upstream profit margins ticked up slightly.