China’s industrial profit growth quickens even as Iran war heightens risks
China's industrial firms saw a 15.8% profit growth in March from a year earlier, the quickest pace in half a year, as the economy shows signs of uneven recovery. While sectors related to artificial intelligence remain strong, consumer-facing sectors continue to struggle amid weak domestic demand.
China's industrial firms reported a 15.8% profit growth in March from a year earlier, accelerating from a 15.2% jump in January-February. The first-quarter industrial profits grew 15.5% year-on-year as economic growth accelerated to 5%. Sectors tied to artificial intelligence, such as Shannon Semiconductor, saw significant growth, with a 79-fold surge in first-quarter net profit. In contrast, consumer-facing sectors like Kweichow Moutai reported subdued performance due to weak domestic demand. Policymakers are working to curb 'involution,' or cut-throat price competition, to support corporate margins. The Middle East crisis has heightened uncertainty over global demand and supply chains, posing external risks to Chinese manufacturers.
This content was automatically generated and/or translated by AI. It may contain inaccuracies. Please refer to the original sources for verification.