China’s industrial profits jumped 15.5% year-on-year in Q1 2026, edging up from a 15.2% increase in the first two months and signaling strengthening momentum in the industrial sector despite external headwinds from the war in the Middle East.
State-owned enterprises recorded a firmer recovery, with profits rising 10.1% to CNY 619.6 billion, improving markedly from a 5.3% gain in January–February. Private firms remained the primary growth engine, though their profit growth slowed to 25.4% from 37.2%, reaching CNY 430.5 billion. Joint-stock companies also proved resilient, posting a 20.9% increase in profits to CNY 1,305.5 billion.
By sector, manufacturing led the gains, with profits up 19.1% to CNY 1,238.4 billion, followed by mining, which rose 16.2%, while utilities underperformed, recording a 3.2% decline. Among specific industries, mining support services saw profits soar 264.6%, accompanied by robust increases in non-ferrous metals (116.7%) and electronics manufacturing (124.5%).
In March alone, industrial profits grew 15.8% year-on-year, the fastest pace in six months.