Chinese beer giant Tsingtao hit by slowing economy

Tsingtao Brewery, China's second-biggest beer maker, has reported a sharp fall in profits.

In the six months to June, net income fell by 11% from a year earlier to 1.07bn yuan (£123m; $160m), its weakest first-half profit since 2012.

An economic slowdown has hit consumer spending in China and beers sales were also dampened by unfavourable weather including severe flooding.

Tsingtao also faced rising competition from foreign beer brands.

China is an attractive market for overseas firms as the nation drinks a quarter of the world's beer output.

But brewers have struggled to make profits in China.

The situation has not been helped by the sluggish Chinese economy, which has caused consumers to rein back on their spending.

Growth in retails sales fell in July to 10.2% from a 10.6% increase in June.