China industrial profits stay resilient in May

BEIJING: China's industrial ​profits grew more slowly though still at a double-digit pace in May, highlighting a widening divide in an economy leaning ‌on factory output ⁠and ⁠overseas shipments to counter soft domestic demand.Economic growth remains ​fragile, hobbled by a prolonged property downturn and deep structural imbalances ​that continue to weigh on domestic activity. Meanwhile, companies seeking to escape intensifying competition at home face ​fresh uncertainty from the protracted Iran ⁠conflict.Profits at ‌the country's industrial firms in May ​rose ​21.1% from a year earlier, easing from ⁠a 24.7% jump in April, data from the ​National Bureau of Statistics (NBS) showed on Saturday.Also read | Apple turns forbidden fruit in India after overnight price shockProfits ​for January-May climbed 18.8% over the corresponding period last year versus an 18.2% increase in the first four months.Earnings trends have diverged sharply across sectors. Profits of manufacturers of computers, communication and electronic ‌equipment soared 103.9% in January-May, buoyed by a global AI investment boom. By contrast, ​profits of ​automakers dropped 19.8% ⁠despite robust exports.Analysts expect policymakers to step up targeted support to stabilise corporate profitability, particularly as consolidation accelerates in ​sectors grappling with overcapacity and cut-throat competition.Also read | A three-decade old Vadilal family feud melts its way into courtroom dramaIndustrial profit figures cover firms with annual revenues of at least 20 million yuan ($2.95 million) from their main operations.