China's Industrial Profits Rise 17.6% in Jan-July; A-Share Indices Climb

China's three major A-share indices rose in tandem on Thursday, July 27, as the latest data revealed that profits of industrial enterprises above designated size nationwide grew 17.6% year-on-year from January to July.

The Shanghai Composite Index closed at 3,956.57 points, up 1.13%. The Shenzhen Component Index ended at 14,048.88 points, gaining 1.50%. The ChiNext Index closed at 3,473.35 points, rising 1.71%.

Data released by China's National Bureau of Statistics on July 27 showed that from January to July, profits of industrial enterprises above designated size reached 4.58206 trillion yuan (approximately USD 638 billion), up 17.6% compared to the same period last year.

During the first seven months of the year, state-controlled enterprises recorded profits of 1.49189 trillion yuan, up 16.3% year-on-year. Shareholding enterprises achieved profits of 3.54940 trillion yuan, an increase of 23.6%. Foreign-funded and Hong Kong, Macao, and Taiwan-invested enterprises posted profits of 1.01378 trillion yuan, up 1.2%. Private enterprises reported profits of 1.13522 trillion yuan, growing 10.9%.

Yu Weining, Chief Statistician of the Industrial Department at the National Bureau of Statistics, stated that overall, industrial profits above designated size achieved relatively rapid growth from January to July. However, he noted that the international situation remains complex and severe, and the domestic imbalance of strong supply but weak demand is still prominent.

Yu emphasized that in the next phase, in accordance with the decisions and arrangements of the Party Central Committee and the State Council, efforts should be made to further expand domestic demand and strengthen supply. It is essential to comprehensively promote the upgrading of traditional industries, the expansion of emerging industries, and the cultivation of future industries, ensuring a smooth transition between old and new growth drivers and continuously consolidating the foundation for high-quality development of the industrial economy.