China's industrial firms saw an 18.7% profit increase in the first half of 2026, a slight slowdown from the previous period. The growth was driven by the technology and raw materials sectors, while property and consumer goods struggled amid weak domestic demand.
The data highlights an uneven economic recovery in China, with strong performance in high-tech and raw materials sectors contrasting with weakness in property and consumer goods, underscoring challenges despite policy efforts.
Profits at China's major industrial firms jumped 18.7% year-on-year in the first half of 2026, driven by a booming technology sector and lower costs, official data from the National Bureau of Statistics showed. This marks a slight moderation from the 18.8% growth seen in the January-to-May period. The electronics sector powered much of the gains, with earnings rocketing 96.9%, fueled by robust demand for AI and computing power, while raw material manufacturing rallied 71.7%. However, the figures mask a polarized economic recovery, with property-linked sectors and consumer goods struggling amid weak domestic demand, despite resilient exports cushioning the slowdown.