China's industrial profits rise 15.5% in first three quarters

Profits at China's major industrial firms extended their run of double-digit growth in the first three quarters of 2026, as earnings in the electronics sector soared and high-tech manufacturing expanded rapidly, official data showed on Tuesday.

Industrial enterprises with annual main business revenue of at least 20 million yuan ($2.98 million) reported combined profits of 6.03 trillion yuan in the first nine months of 2026, up 15.5 percent year-on-year, according to the National Bureau of Statistics.

In September alone, industrial profits rose 14.4 percent from a year earlier, accelerating from a 4.2 percent increase in August and ending four months of moderation in growth, the bureau said.

The sustained profit growth, according to Yu Weining, a statistician with the bureau, was largely driven by strong gains in the electronics sector and high-tech manufacturing.

In the first three quarters, profits in the electronics sector doubled year-on-year, contributing 9.6 percentage points to overall profit growth among major industrial firms, NBS data showed.

Demand for AI computing power and advanced memory products fueled the surge, Yu said, adding that profits at manufacturers of specialized electronic materials jumped 220 percent.

High-tech manufacturing provided further support, with profits climbing 52 percent year-on-year in the first three quarters, the NBS said. The sector accounted for 25.5 percent of total profits among major industrial firms, up 6.2 percentage points from a year earlier.

Raw materials manufacturers also posted strong gains, with profits rising 44.9 percent year-on-year and contributing 5.9 percentage points to overall industrial profit growth, NBS data showed.

"Profits at major industrial firms grew at a brisk pace in the first nine months, and the industrial economy made steady progress toward high-quality development," Yu said.

Looking ahead, Yu called for more effective use of macroeconomic policies, stronger efforts to expand domestic demand and a faster transition to new growth drivers to strengthen the economy's internal growth momentum.