China Industrial Profits Accelerate on AI Demand, Higher Oil Prices

Broad-Based Growth Across Ownership Types

Industrial enterprises in China recorded solid profit gains across different ownership structures in the first four months of 2026. State-owned enterprises saw profits increase by 17.1% to CNY 827.15 billion. Joint-stock companies reported a stronger performance, with profits climbing 24.0% to CNY 1,883.44 billion.

Private firms remained an important contributor to overall profit growth. Their profits rose 23.7% to CNY 651.14 billion in the January–April period, although this represented a slight moderation from the 25.4% increase seen in the first quarter.

The overall 18.2% year-on-year rise in industrial profits for January–April followed a 15.5% expansion in the first quarter, indicating further momentum in the second quarter so far. The robust performance has been attributed to AI-related demand and surging oil prices linked to the Middle East conflict.

Sector and Industry Performance

By sector, manufacturing continued to lead profit gains, with a 20.4% year-on-year increase in the first four months of 2026. The mining sector also posted strong growth, with profits up 26.0%. In contrast, utilities registered a 1.9% decline in profits over the same period.

Within manufacturing, several industries reported especially strong profit growth. Profits in computer, communication, and other electronic equipment manufacturing jumped 107.7%, reflecting the impact of rising AI-related demand. Non-ferrous metal smelting and rolling processing recorded an even larger increase, with profits up 117.8%.

On a monthly basis, industrial profits in April rose 24.7% year-on-year, accelerating from 15.8% growth in March. The April figure was the largest monthly gain since November 2023, underscoring the recent strengthening in industrial profitability.

FAQ

What was the overall growth in China’s industrial profits in January–April 2026?
Industrial profits increased by 18.2% year-on-year in the January–April 2026 period.

Which ownership types showed the strongest profit growth?
Joint-stock companies recorded the strongest profit growth at 24.0%, followed by private firms at 23.7% and state-owned enterprises at 17.1%.

Which sectors and industries led profit gains?
Manufacturing and mining led sector gains, with profits up 20.4% and 26.0% respectively, while utilities profits fell 1.9%. By industry, computer, communication, and other electronic equipment manufacturing and non-ferrous metal smelting and rolling processing posted particularly large increases of 107.7% and 117.8% respectively.

How did April’s industrial profit growth compare with previous months?
Industrial profits in April rose 24.7% year-on-year, up from 15.8% in March, marking the strongest monthly increase since November 2023.