Overview
- Industrial profits rose 15.1% year‑on‑year in June, the slowest monthly pace in 2026, according to National Bureau of Statistics data released July 27.
- First‑half profits climbed about 18.7% compared with a year earlier, leaving overall gains strong but showing a cooling trend since April.
- Chip and high‑tech manufacturing drove the rebound with outsized gains in electronics and integrated circuits, including a reported multi‑thousand percent jump in major chipmaker profits for H1.
- Domestic demand remains weak, with auto manufacturing profits falling about 19.5% in the first half and the property sector continuing to drag on consumption.
- Factory‑gate inflation eased as producer prices fell 0.3% month‑on‑month in June after energy and petrochemical costs dropped, and analysts expect the Politburo to urge targeted fiscal measures rather than a large stimulus package.