China’s Industrial Profits Remain Strong as Recovery Momentum Begins to Ease
📊 China’s industrial profits rose 18.7% in the first half of 2026, nearly unchanged from the 18.8% growth recorded during the first five months.
🏭 In June alone, profit growth slowed to 15.1% from 21.1% in May, indicating a loss of momentum despite continued support from exports and high-tech manufacturing.
🚗 The divergence remained clear, with automotive industry profits falling 19.5%, while electronics, technology and export-oriented raw material sectors delivered relatively stronger results.
📉 The data suggest China’s economy continues to operate at two speeds, as export-driven industries outperform consumption, property and other sectors dependent on domestic demand.
🏦 Many investors may therefore continue to expect Beijing to strengthen support for consumption, businesses and the property market during the third quarter.