National Industrial Profits Hit 39.48 Trillion Yuan
China's major industrial firms posted a robust 18.7 percent year-on-year increase in combined profits during the first half of 2026, reaching 39.48 trillion yuan (approximately $5.7 trillion), according to data released by the National Bureau of Statistics on July 27. This marked the fastest pace of growth in two years and represented an acceleration of 3.2 percentage points compared with the first quarter.
Profit Breakdown by Ownership Type
The data showed divergent performance across enterprise types, with domestically focused sectors outperforming their foreign-invested counterparts.
| Enterprise Type | Profit (billion yuan) | YoY Growth |
|---|---|---|
| State-holding enterprises | 13,077.4 | +17.9% |
| Joint-stock enterprises | 30,443.2 | +24.7% |
| Foreign & HK/Macau/Taiwan enterprises | 8,873.2 | +2.6% |
| Private enterprises | 9,655.6 | +13.0% |
New Growth Drivers Fuel Gains
Analysts attributed the strong showing to the rapid expansion of China's new quality productive forces — particularly integrated circuit output, which surged 23.1 percent to 279.8 billion pieces in H1 2026, and new energy vehicle sales, which hit a monthly record of 744,600 units in June. The government-led equipment upgrade and trade-in subsidy programs, which surpassed 1 trillion yuan in disbursements during H1, also provided significant support to industrial demand.
Implications for Second Half
The acceleration in profit growth, particularly for joint-stock and private enterprises, suggests that China's economic restructuring is gaining traction. However, the comparatively modest 2.6 percent growth for foreign-invested firms reflects ongoing challenges in attracting and retaining international capital amid global supply chain realignment pressures. Economists at several brokerages expect industrial profits to remain elevated in Q3 as fiscal stimulus measures take full effect.
Source: National Bureau of Statistics, July 27, 2026