FX.co ★ China Industrial Profits Jump 15.2% in Jan-Feb

Profits at China’s industrial firms jumped 15.2% year-on-year to CNY 1.02 trillion in the first two months of 2026, a sharp acceleration from the modest 0.6% increase recorded in 2025. The data underscore the strengthening momentum of China’s economic recovery, despite the drag on global growth prospects from the war in the Middle East.

State-owned enterprises returned to expansion, with profits rising 5.3% to CNY 366.6 billion after a 3.9% decline in 2025. Private firms posted particularly strong results, with profits surging 37.2% to CNY 284.4 billion, rebounding from virtually no growth a year earlier. Joint-stock enterprises also improved markedly, with profits up 22.1% to CNY 803.3 billion, reversing a slight earlier contraction.

By sector, manufacturing was the main driver, with profits climbing 18.9% to CNY 732.1 billion. Mining profits increased 9.9% to CNY 155.6 billion, while utilities—including electricity, heat, gas, and water supply—saw profits rise 3.7% to CNY 136.8 billion.

Among specific industries, computer, communication, and electronic equipment manufacturing led the upswing with a 200% increase in profits. The non-ferrous metal smelting and rolling sector also posted robust gains, with profits soaring 150%.