China Industrial Profits Surge 18.7% as Tech Boom Masks Property Slump

Profits at China’s major industrial firms jumped 18.7% year-on-year in the first half, driven by a booming technology sector and lower costs, official data showed Monday.

Yet the 3.95 trillion yuan ($584 billion) windfall masks a polarized economic recovery. While high-tech manufacturing and raw materials surged, property-linked sectors and consumer goods struggled amid weak domestic demand.

The electronics sector powered much of the gains, with earnings rocketing 96.9%, fueled by robust demand for AI and computing power. Raw material manufacturing rallied 71.7% on a strong appetite for copper and aluminum.