BEIJING (Reuters) - Profits earned by Chinese industrial firms fell 4.2 per cent in January to February from a year earlier to 745.2 billion yuan (S$164.71 billion), compared with an annual fall of 8 per cent in December, the National Bureau of Statistics said on Friday.

The bureau always gives a combined profit figure for the first two months of each year to smooth out seasonal distortions caused by the long Lunar New Year holiday, when most companies shut down.

The Lunar New Year holiday began on Jan. 31 last year but started on Feb. 19 this year.