The profit rates of China's downstream industries are expected to rebound in the latter half of 2005, said Gao Shanwen a top economist

The gross profit rate of downstream sectors in the country now stands at 4.2 percent, the lowest point since 2000, Gao said, attributing this to the rocketing price of upstream products directly leading to the cost increase of downstream sectors.

The prices of some upstream products including coal, iron and steel have started to drop, which may bring a turning point to downstream sectors in the latter half of this year, Gao said.