China’s industrial profits surged 15.5% yoy in Q1 2026, accelerating from a 15.2% gain in the first two months of the year. The latest result indicated improving momentum in the industrial sector, despite external headwinds from a war in the Middle East. State-owned enterprises showed a firmer recovery, with profits up 10.1% to CNY 619.6 billion, after a 5.3% gain in January-February. Private firms remained the key driver, though growth eased to 25.4% from 37.2%, reaching CNY 430.5 billion. Joint-stock companies also stayed resilient, with profits rising 20.9% to CNY 1,305.5 billion. By sector, manufacturing led gains, climbing 19.1% to CNY 1,238.4 billion, followed by mining at 16.2%, while utilities lagged with a 3.2% drop. Among industries, mining support services surged 264.6%, alongside strong gains in non-ferrous metals (116.7%) and electronics manufacturing (124.5%). In March alone, industrial profits rose 15.8% yoy, the fastest in six months.