China’s industrial companies’ profits flowed 16.7 percent in May from a year earlier, hastening from 14 percent in April in spite of expectations of a slowdown as copying costs rise and the property market cools.

The first five months of the year the profits reached 2.9 trillion Yuan which is $424 billion. It is up 22.7 percent from the same period of the last year although the growth stride was lower than the 24.4 percent annual rate for January-April 2017.

On Tuesday the statistics bureau official He Ping said: “The quickened growth of China’s industrial profits was partly due to a low-base effect at the same time a year earlier, which marked the second slowest growth over the course of last year.”

He further said it is needed to be closely watched that, the operating of the costs as a proportion of operating revenue rose on an annual basis for a third consecutive month in May.

The profit advance at the private enterprises and foreign enterprises fell to 14.0 percent and 18.9 percent correspondingly in the year to May, from 14.3 percent and 19.8 percent in January-April.

Nomura analysts this progress noted was determined by “increased investment gains” and “net non-operating incomes” terms often used to refer to property profits. They added that: “Our concerns over growth quality remain.”

The china’s state-owned firms profit were up 53.3 percent at 652.04 billion Yuan in January-May, compared with a 58.7 percent rise in the first four months. “The low base is likely to support the high-profit growth of SOEs for a few more months,” said by Nomura.

After Moody’s Investors demoted its credit rating the apprehensions about the China grew rises. Chinese financial growth and strength will corrode in coming years as growth slows and debt continues to rise, this is said by the agency.

Nomura also said that: “The return of PPI deflation should also lead to lower industrial profit growth.” The statistics bureau of China said this month that economic performance in the January-May period laid a compact basis for achieving the full-year growth target of about 6.5 percent.

The International Monetary Fund this month raised its 2017 growth estimate to 6.7 percent from 6.6 percent impelled by the China’s strong growth.

All the data includes companies with annual operating revenue of more than 20 million Yuan from their key operations.