Industrial profits slowdown suggests stabilization in economy

China's industrial profits rose 9.6 percent in April to 468.6 billion yuan from a year earlier, that's slower than the 10.7 percent increase in March.

Profits rose 10 percent to 1.8 trillion yuan in the first four months of 2014. State run companies showed the biggest drop in profit growth, whereas private companies and foreign invested firms continued to post double digit profit increases. Breaking down by industries -- auto, electronics are among the outperformers, whereas industries like coal, steelmaking and nonferrous metals reported lower earnings. The changes in industrial profit show the effects of China's structural reforms. A series of policies to eliminate outdated capacity and move away from energy intensive, poluting industries have been put in place.