China’s industrial profits rise sharply in June despite economic downturn

China’s industrial profits grew at a faster pace in June, official data showed on Saturday, even as the economic recovery remains shaky as companies grapple with a slump in consumer confidence.

Profits rose 3.6% last month from a year earlier, following a 0.7% increase in May, while first-half profit growth was 3.5%, faster than the 3.4% increase in the January-May period, the National Bureau of Statistics data showed.

Robust data and The economic slowdown, Japan’s economic performance fell short of expectations in the second quarter as the job market and real estate market continued to be sluggish and the consumer sector performed poorly.

Of the more than 10 mainland-listed alcoholic beverage companies that have released their first-half profit forecasts, about half expect to incur losses in the first half.

However, despite rising trade tensions with the West, optical transceiver companies Zhongji Innolight and Suzhou Tianfeng Optical Communications expect first-half earnings to grow several times as both companies are suppliers to U.S. chip giants. Nvidia Become the biggest winner in global artificial intelligence construction.

China is trying to provide more monetary stimulus to support its fragile economy, surprising markets for the second time on Thursday by enacting a Not scheduled The sharp drop in lending rates comes just days after authorities cut several benchmark lending rates following a meeting of top leaders to work out other major reforms.

The country’s Ministry of National Planning and Finance announced plan The Ministry of Finance decided on Thursday to allocate about 300 billion yuan of ultra-long-term special treasury bond funds to step up equipment renewal and consumer goods trade-in activities across the country.

According to detailed data from the National Bureau of Statistics, profits of state-owned enterprises grew by 0.3% in the first half of the year, profits of foreign-invested enterprises grew by 11%, and profits of private enterprises grew by 6.8%.

Industrial profit data covers companies with annual revenue from main business of at least 20 million yuan ($2.75 million).