by XIN Yuan

China's industrial profits grew at a faster pace in the first two months of 2026, driven by strong gains in equipment and high-tech manufacturing, official data showed on Friday.

Profits at industrial firms with annual revenue above 20 million yuan rose 15.2% year-on-year to 1.02 trillion yuan (about US$147 billion) in January-February, according to the National Bureau of Statistics. The growth rate was up 9.9 percentage points from December and 14.6 points higher than the full-year pace in 2025.

The statistics bureau said profit growth was "relatively fast" overall, but cautioned that external uncertainties, including geopolitical risks, and uneven recovery across sectors remain. Of 41 major industries, 24 reported profit increases, while more than 60% saw improving performance.

Equipment manufacturing continued to underpin growth, with profits rising 23.5% and accounting for 30.4% of total industrial profits. High-tech manufacturing led the expansion, with profits surging 58.7% and contributing nearly 8 percentage points to overall growth.

Analysts said profits are likely to continue recovering as demand stabilizes and producer prices rebound, although rising costs could pressure downstream sectors.