Key facts
- China's industrial firms reported 11.2% profit growth in July, down from 15.1% in June.
- Profit growth for the first seven months of the year slowed to 17.6%.
- The computer, communication, and electronic equipment manufacturing sector saw profits jump 110%.
- Consumer-facing and property-related industries continued to face weak domestic demand.
- China's vice finance minister pledged to roll out additional fiscal support measures.
China's industrial firms reported slower profit growth in July, with a 11.2% increase year-on-year, down from 15.1% in June. For the first seven months of the year, profit growth slowed to 17.6% from 18.7% in the first half.
Sectors benefiting from the global AI boom, such as computer, communication, and other electronic equipment manufacturing, saw significant profit jumps of 110%. Specific segments like fibre optics and optical cable manufacturing experienced even larger gains.
Conversely, industries tied to domestic demand, including consumer-facing and property-related sectors, continued to face pressure. Kweichow Moutai, a major liquor producer, reported a 2% decline in its first-half net profit due to cautious consumer spending and a slump in the property market.
In response to the weakening domestic demand and overall economic momentum, China's vice finance minister pledged to implement additional fiscal support measures in a timely manner. The industrial profit figures encompass firms with annual revenues of at least 20 million yuan from their main operations.