Profit growth at China's industrial companies moderated to 9.4 percent year on year in the first two months, [HK Corporate Registration]down from last year's pace of 12.2 percent, the National Bureau of Statistics said this morning.

It was the latest evidence China's economy is slowing and it triggered calls for more accommodative policies.

Industrial profit reached 779.3 billion yuan (US$126.7 billion) in the January-February period with 29 of 41 industries reporting higher earnings.

Private businesses recorded a 16.4 percent average rise in profit to 260.3 billion yuan, while foreign-invested companies and those from Hong Kong, Macau and Taiwan said profit increased an average of 14.5 percent. However, state-owned enterprises reported a 0.2 percent decline in profit, [Hong Kong Company Formation, Incorporation, Business Registration]dragging down the average growth.

China's economic growth showed signs of a rapid slowdown with activity data was much weaker than expected in the first two months.

Some analysts said growth in the first quarter may slow to around 7 percent.