China's Industrial Profits Rise 3.5% in First Half of 2024

Despite export gains, challenges remain with domestic demand and overcapacity.

Industrial firms with annual revenues over 20 million yuan saw profits reach 3.51 trillion yuan.
June exports grew 8.6%, the fastest rate in 15 months, boosting industrial profits.
Domestic demand remains weak, affecting overall profitability and recovery sustainability.
Government subsidies play a key role in maintaining profitability amidst overcapacity.
Foreign-invested companies outperformed mainland firms, with an 11% profit increase.