China's Jan-Feb industrial growth picks up, but pace slower than 2017

Profits at China's industrial firms picked up pace in the first two months of the year from December but still lagged growth for the whole of 2017, backing expectations the world's second-biggest economy is set to cool as Beijing clamps down on debt risks.

Slowing earnings grsowth, following a six-year high last year, could deter investment and put further pressure on China's stock markets which have taken a knock in recent sessions on growing fears of a trade war with the United States.

Weaker earnings could also complicate Beijing's campaign to reduce a mountain of debt amassed by its state-owned giants, which dominate its heavy industries.

Industrial profits rose 16.1 percent year-on-year to 968.9 billion yuan ($154.57 billion) in the first two months of the year, the National Bureau of Statistics (NBS) said on Tuesday.

That compared with a 10.8 percent increase in December, though it lagged the 21.0 percent jump for 2017 as a whole, the fastest pace since 2011, as a construction boom boosted prices of building materials from steel bars to copper pipes and cement.