China's major industrial enterprises posted 15.8% profit growth in March, the fastest since September, driven by AI and semiconductor sectors. Q1 profits reached 1.696 trillion yuan, up 15.5% YoY. Manufacturing outpaced mining with 19.1% vs 16.2% growth. Computer and electronic equipment profits surged 120%, while optical-fibre manufacturing profits jumped 336.8%.
China's industrial profits jumped 15.8% year-on-year in March, accelerating from 15.2% in the first two months, data showed Monday. Profits expanded 15.5% in Q1—the fastest start since 2018 excluding the 2021 pandemic spike—following a stabilization in 2025 when earnings grew just 0.6% after three straight years of contraction. The surge came even as Brent crude prices soared 48% since U.S.-Israel strikes on Iran began in late February, driving up costs for chemicals, fibers and plastics. Producer price growth turned positive in March for the first time in over three years, ending the longest deflationary streak in decades.
