China industrial profits jump 15.8% in March, fueled by AI and chip boom despite oil shock risks
CNBC • • general
Key Points:
- China's industrial firms' profits surged 15.8% year-on-year in March, marking the fastest growth in six months, driven largely by equipment and high-tech manufacturing sectors.
- The first quarter saw a 15.5% increase in enterprise profits, the strongest start since 2017, fueled by booming artificial intelligence, semiconductors, and emerging industries like drones and intelligent consumer devices.
- Raw material producers' earnings rose 77.9% in Q1 as oil refineries returned to profitability, despite rising global oil prices due to the Middle East conflict pushing up import costs.
- Robust exports, which grew 14.7% in Q1, helped underpin manufacturers' profitability, though higher energy prices and weakening external demand are expected to challenge the economy in Q2.
- China's producer price growth turned positive in March for the first time in over three years, ending a long deflationary period, but geopolitical tensions and U.S. sanctions on Chinese refineries buying Iranian oil may impact future energy supplies.
