China's Industrial Profits Rise 3.5% in H1 2024

China's industrial profits increased by 3.5% year-on-year in the first half of 2024, amounting to approximately 3.51 trillion yuan (US$485 billion), according to the National Bureau of Statistics (NBS). The growth rate, though slower than the 4.3% seen in the first quarter, marks a significant improvement from last year's 2.3% decline. Analysts attribute this recovery largely to robust exports, which surged by 8.6% in June, while domestic demand remains weak, limiting further profitability improvements. Despite rising profits, the overall economic recovery is fragile, hindered by a struggling property market and low consumer confidence. The NBS noted that while industrial output is rising, insufficient domestic demand continues to constrain profitability. Efforts to stimulate the economy have included unexpected monetary policy adjustments, aimed at addressing these challenges.