by XIN Yuan

China's industrial profits grew faster in the first quarter, helped by policy support and strong gains in high-tech and equipment manufacturing.

Profits at industrial firms above a designated size rose 15.5% year on year to 1.696 trillion yuan (US$248 billion) in January–March, data from the National Bureau of Statistics showed on Monday, up 0.2 percentage points from the January–February pace. In March alone, profits increased 15.8%, accelerating by 0.6 percentage points.

YU Weining, chief statistician at the bureau's industrial department, said a more proactive policy stance supported a steady recovery in industrial activity, with faster profit growth and improving corporate efficiency.

High-tech manufacturing led, with profits up 47.4%, driven by AI- and semiconductor-related sectors.

Equipment manufacturing profits rose 21.0%, with electronics up 124.5% and railway, shipbuilding and aerospace industries up 16.7%.

Raw materials profits rose 77.9%, with non-ferrous metals up 116.7%.

The bureau warned that external uncertainty remains elevated and domestic demand is still weak, pointing to persistent supply-demand imbalances.

WEN Bin, chief economist at China Minsheng Bank, said profit growth is likely to continue but remain moderate, supported by policy measures.

He warned that rising geopolitical tensions could lift energy and commodity prices, supporting upstream sectors but also lifting inflation and weakening external demand.