China's Industrial Profits Rise 18.7% to Approximately $592.5 Billion in First Half of 2026

Beijing | EcoPulse24

China's industrial profits increased 18.7% year over year to approximately $592.5 billion during the first half of 2026, easing slightly from the 18.8% growth recorded in the January-May period, according to official data.

The figures indicate that resilient exports continued to cushion the impact of sluggish domestic demand, highlighting the uneven nature of China's economic recovery despite government efforts to stimulate household consumption.

Profits generated by state-owned enterprises (SOEs) rose 17.9% to approximately $195.0 billion, while joint-stock companies posted stronger growth of 24.7%, with profits reaching approximately $456.0 billion.

Meanwhile, private enterprises recorded a 13.0% year-over-year increase in profits to approximately $144.83 billion.

Mining and Manufacturing Lead Growth

By sector, the mining industry remained the strongest profit driver, with earnings surging 33.5% from a year earlier.

The manufacturing sector followed with a 20.1% increase in profits, reflecting continued strength in industrial production and export-oriented activities.

In contrast, the utilities sector reported a 4.2% decline in profits during the first half of the year.

Non-Ferrous Metals and Electronics Post Strongest Gains

Among individual industries, non-ferrous metal smelting and rolling delivered the strongest performance, with profits soaring 99.4% year over year.

Profits in computer, communication and other electronic equipment manufacturing climbed 96.9%, while the chemical industry recorded a 67.8% increase.

On a monthly basis, China's industrial profits rose 15.1% year over year in June, slowing from the 21.1% growth recorded in May, indicating some moderation in industrial earnings momentum.

China Industrial Profits Snapshot

Sector Performance

Best-Performing Industries

EcoPulse24 Analysis

China's latest industrial profit data underscores the manufacturing sector's continued resilience, supported primarily by export demand even as domestic consumption remains subdued. The strong performance of mining, manufacturing and high-tech industries suggests that external demand continues to play a critical role in sustaining corporate earnings.

However, the moderation in June's profit growth compared with May indicates that industrial momentum may be gradually easing, reinforcing expectations that policymakers will continue pursuing measures aimed at strengthening domestic demand alongside maintaining export competitiveness.