China’s industrial profit rises 18.7% in first half of 2026
Industrial earnings rose 18.7% in the first half as AI-related chip and equipment demand and higher factory-gate prices supported the rebound.
- On Monday, the National Bureau of Statistics reported China's industrial profits climbed 18.7% in the first half of 2026, though June growth slowed to 15.1% year-on-year, marking a second straight month of deceleration.
- Earnings staged a notable turnaround this year, swinging from barely positive growth in 2025 to double-digit gains as an AI-driven boom in chip and equipment manufacturing coincided with the end of nearly three years of factory-gate deflation.
- Producer prices dipped 0.3% month-on-month in June, the first decline since July 2025, according to LSEG data, as normalizing tanker flows through the Strait of Hormuz pulled oil and petrochemical prices lower.
- "Growth should stay resilient thanks to exports, even as domestic demand lags," said Robin Xing, chief China economist at Morgan Stanley, citing the AI-driven investment cycle and broader Asian industrial capex super-cycle.
- Investors now turn to the Communist Party's Politburo meeting in late July, where expectations for large stimulus packages remain low as Beijing focuses on curbing excess factory capacity.
18 Articles
18 Articles
PECHINO (CHINA) (XINHUA/ITALPRESS) In the first half of 2026 the Chinese electronics industry recorded a 96.9% increase in profits on an annual basis, contributing for 8.5 percentage points to the overall growth of profits of the main industrial companies. Today the National Statistical Office (NBS) announced this. Thanks to the wide spread of artificial intelligence and the increasing demand for computing power, the profits of computer producti…
China's industrial firms show solid growth in profits
Profits of China's industrial firms above a designated size increased 18.7 percent year on year in the first half, data from the National Bureau of Statistics showed on Monday. Industrial firms with an annual main business revenue of at least 20 million yuan saw their combined profits reach 3.95 trillion yuan in the January - June period. On a month-to-month basis, the first-half growth pace was solid, though slower, than the 18.8 percent increa…
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