China Corporate Profits

Profits at China’s industrial firms grew 0.9% yoy to CNY 4.69 trillion in the 1st eight months of 2025, rebounding from a 1.7% decline in the 1st seven months of the year. The latest figures come amid further stimulus measures from Beijing and easing trade tensions with the US. The increase was supported by faster growth in the private sector (3.8% vs 1.8% in Jan–July), while state-owned enterprises recorded a much smaller decline (-1.7% vs -7.5%). By sector, profits rose in general manufacturing (5.8%), non-ferrous metals (12.7%), heat production (13.0%), electrical machinery and equipment (11.5%), computers and communications (7.2%), agriculture (11.8%), and special equipment (6.9%). In contrast, declines were seen in autos (-0.3%), non-metallic minerals (-2.2%), chemicals (-5.5%), textiles (-7.0%), oil and gas (-12.4%), and coal mining (-53.6%). In August alone, profits surged 20.4% yoy, recovering sharply from a 1.5% drop in July, and marking the 1st monthly growth in four months.