China industrial profit growth slows as domestic weakness persists

(Sharecast News) - China's industrial firms reported slower profit growth in June as strong export demand continued to offset weak domestic conditions, underlining the patchy nature of the country's recovery. Industrial profits rose 15.1% year‑on‑year in June, easing from 21.1% in May, according to the National Bureau of Statistics, while first‑half profits were up 18.7%, little changed from the January to May period.

The figures also highlighted strains in the domestic market, with automobile manufacturing profits down 19.5% as car sales fell for a ninth straight month.

Deterioration in consumption and the property sector dragged second‑quarter GDP to its weakest pace in more than three years, keeping pressure on policymakers to address imbalances despite recent efforts to spur spending.

Market reaction was muted, with Chinese equities and the yuan slightly firmer, while attention will now turn to the late‑July Politburo meeting for any signals on further support - though expectations for broad stimulus remain tempered by resilient exports and Beijing's preference for targeted easing.





Reporting by Iain Gilbert at Sharecast.com