ECONOMY

China’s Industrial Profits Surge, but Recovery Remains Uneven

Published: Oct. 27, 2026 4:31 p.m. GMT+8

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Profits at China’s major industrial companies rose 14.4% year-on-year in September, accelerating 10.2 percentage points from the month before, data released Tuesday by the National Bureau of Statistics showed.

For the first nine months of the year, profits grew 15.5%, down 0.2 percentage points from the January-to-August pace.

Electronics manufacturing profits surged more than 100% in the first nine months, while raw materials manufacturing profits rose 45%. Demand for AI computing, advanced storage and metals such as copper and aluminum supported growth. Caixin calculations show the two sectors contributed nearly all overall industrial profit growth.

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September industrial profits rose 14.4% year-on-year, accelerating 10.2 points from August; first nine months grew 15.5%.
Electronics manufacturing profits surged over 100%; raw materials up 45%, while ferrous metal, nonmetallic minerals, and autos declined sharply.
Receivables reached 30 trillion yuan ($4.5 trillion), up 10% year-on-year, highest since June 2023; collection period lengthened to 71.6 days.

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1. In September, profits at China's major industrial enterprises rose 14.4% year-on-year, marking a significant acceleration of 10.2 percentage points compared with the previous month's growth rate, according to data released Tuesday by the National Bureau of Statistics. [para. 1]

2. For the January-to-September period, cumulative industrial profits grew 15.5%, a slight deceleration of 0.2 percentage points compared with the pace recorded during the first eight months of the year. [para. 2]

3. A breakdown of the data reveals a stark divergence across sectors. Electronics manufacturing saw profits surge by more than 100% during the first nine months, while raw materials manufacturing profits climbed 45%. This robust growth was underpinned by strong demand for AI computing infrastructure, advanced storage solutions, and industrial metals such as copper and aluminum. According to Caixin's calculations, these two sectors collectively contributed nearly all of the overall industrial profit growth during the period. [para. 3]

4. In sharp contrast, several other sectors experienced significant profit declines. Profits in ferrous metal smelting and pressing fell by 73%, nonmetallic mineral products dropped 47%, and auto manufacturing declined 23% during the same nine-month period. [para. 4]

5. The financial health of industrial firms showed signs of strain, as rising accounts receivable pointed to worsening payment delays across the sector. Receivables reached nearly 30 trillion yuan (approximately $4.5 trillion) by the end of September, marking a 10% increase year-on-year. Notably, the growth rate of receivables accelerated for the sixth consecutive month, reaching its highest level since June 2023. The average collection period also lengthened by 1.3 days from the previous year, extending to 71.6 days, which indicates that companies are taking longer to receive payments from their customers, potentially straining cash flows and operational liquidity. [para. 5]

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Who’s Who

CEIC: The article cites CEIC as a data source for China's industrial profit statistics, alongside the National Bureau of Statistics and Caixin, but provides no additional information about the organization itself.

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