Profits at China's industrial companies rose 4 percent in April from a year ago, as a government push for equipment upgrades lifted demand and exports returned to growth, giving a boost to the economy.
The uptick reversed a drop in March that ended seven straight months of increases.
A global cyclical boom in technology products like chips as well as a push by the Chinese government to get firms to replace their old equipment likely supported the April upturn.
Strong overseas demand for manufactured goods also improved the earnings of makers of things from clothing to furniture.
"The fostering of 'new productive forces' coupled with the equipment upgrade policy is gradually showing impact," Yu Weining, a government statistician, said in an accompanying statement. The catchphrase refers to emerging industries including tech, which China is trying to promote as a new source of growth.
Profits of foreign firms led the rebound this year so far, rising 17 percent in the first four months after heavy losses in 2023, while earnings of state-owned enterprises fell 2.8 percent.
But the recovery of industrial firms needs to be further solidified as "domestic demand remains insufficient and external environment is still complex and grim," Yu said.
Meanwhile, Beijing is adding fuel to the economy, as China's issuance of local government bonds in May reached the most in seven months.
The tally for the month so far stands at 790 billion yuan (HK$851 billion), according to data compiled by Bloomberg.
May's figure has been boosted by 391 billion yuan in sales planned for this week, the data show.
Industrial firms’ profits rose 4 percent. XINHUA
