China’s industrial profits expanded by 15.1% year-on-year in June, according to data released Monday by the National Bureau of Statistics.
The figure marks a second straight month of slowing growth, as declining energy prices eroded the margin boost that had previously supported corporate earnings.
The deceleration highlights the sensitivity of Chinese industrial margins to commodity price swings.
While the absolute growth rate remains robust—reflecting a strong turnaround from barely positive growth in 2025—the momentum is clearly fading.
Traders are interpreting the slowdown as a signal that the earnings cycle for Chinese industrials may be peaking, particularly as input cost savings diminish.
This development adds to a mixed picture of China’s economic recovery.