(Yicai) Nov. 27 -- Profits at China's industrial companies fell for the first time in three months in October, mainly due to a high base of comparison a year ago and increasing financing costs.

Profits fell 5.5 percent to CNY5.95 trillion (USD847.5 billion) last month from a year earlier, according to data released by the National Bureau of Statistics today. They had jumped 21.6 percent in September and 20.4 percent in August.

The decline was mainly due to a higher base of comparison in the same period of last year and a rapid rise in financing costs, according to Yu Weining, chief statistician at the NBS.

In the first 10 months of the year, industrial profits rose 1.9 percent to CNY6 trillion (USD847.5 billion), compared with 3.2 percent growth in the first nine months, the data also showed.

Industrial firms are steadily improving their profit structure, with high-tech and equipment-manufacturing industries becoming the main profit growth drivers, Yu said at a press conference.

From January to October, equipment manufacturers saw profits rise 7.8 percent, accounting for nearly 39 percent of all industrial profits, up from 37 percent a year earlier. They contributed 2.8 percentage points to the overall growth rate, according to Yu.

Profits at large high-tech manufacturers jumped 8 percent, and more than doubled at drone makers and smart vehicle equipment producers, Yu said. Integrated circuit manufacturers saw profits surge 89 percent.

As the country’s anti-involution policy takes effect, pricing improvements should gradually support a recovery in industrial profits, said Li Chao, chief economist at Zheshang Securities. But given the persistent oversupply in industry, a quick rebound is unlikely, he said, adding that product price and profit recovery will likely be a gradual, medium-to-long-term process.

The National Development and Reform Commission and other departments have been working together to draw up criteria identifying disorderly price competition, the state planner announced today. It will continue to crack down on unfair competition and maintain a healthy market order, the commission said.

Editors: Dou Shicong, Futura Costaglione