China Industrial Profits Jump 18.8% in Jan-May

China’s industrial profits surged 18.8% year-on-year to CNY 3.14 trillion in the January-May 2026 period, accelerating from a 18.2% gain in the first four months of the year. The latest result reflected the ongoing AI investment boom and continued policy support for advanced industries despite lingering weakness in parts of the property-related sector. State-owned enterprises posted solid gains, with profits up 19.6% to CNY 1.05 trillion, while joint-stock companies climbed 24.1% to CNY 2.43 trillion. In addition, private firms saw profit growth of 10.7% to CNY 772.65 billion. By sector, manufacturing remained the key driver, soaring 74.3%, followed by utilities (63.7%) and mining (54.4%). Industry highlights included non-ferrous metal smelting and rolling (117.1%), computer and communication equipment (103.9%), and chemicals (71.6%). In May alone, industrial profits rose 21.1% from the prior year, moderating from April’s 24.7% jump, the strongest pace since November 2023.

China’s industrial profits jumped 18.2% year-on-year in the January-April 2026 period, following a 15.5% rise in the first quarter. The strong rise was attributed to rising AI-related demand and surging oil prices stemming from the Middle East conflict. State-owned enterprises posted solid growth, with profits rising 17.1% to CNY 827.15 billion. Joint-stock companies also reported a 24.0% jump in profits to CNY 1,883.44 billion. Private firms remained a key driver, though profit growth eased to 23.7% from 25.4% in Q1, reaching CNY 651.14 billion. By sector, manufacturing continued to lead gains, with profits climbing 20.4%, followed by mining at 26.0%, while utilities profits fell 1.9%. Among industries, notable increases were seen in computer, communication, and other electronic equipment manufacturing (107.7%) and non-ferrous metal smelting and rolling processing (117.8%). In April, industrial profits surged 24.7%, the biggest gain since November 2023, after a 15.8% growth in March.

China’s industrial profits surged 15.5% yoy in Q1 2026, accelerating from a 15.2% gain in the first two months of the year. The solid gain came despite external headwinds from the Middle East conflict, which has heightened uncertainty around global demand and supply chains. State-owned enterprises showed a firmer recovery, with profits up 10.1% to CNY 619.6 billion, after a 5.3% growth in January-February. Private firms remained the key driver, though growth eased to 25.4% from 37.2%, reaching CNY 430.5 billion. Joint-stock companies also stayed resilient, with profits rising 20.9% to CNY 1,305.5 billion. By sector, manufacturing led gains, climbing 19.1% to CNY 1,238.4 billion, followed by mining at 16.2%, while utilities lagged with a 3.2% drop. Among industries, mining support services surged 264.6%, alongside strong gains in non-ferrous metals (116.7%) and electronics manufacturing (124.5%). In March alone, industrial profits rose 15.8% yoy, the fastest in six months.