Overview
- Industrial profits fell 4.3% year-on-year in June, extending May’s 9.1% drop and pushing half-year earnings down 1.8%.
- Factory-gate prices recorded their steepest two-year deflation in June, squeezing profit margins across sectors.
- State-owned enterprises logged a 7.6% profit decline in the first half, while private and foreign-invested firms saw 1.7% and 2.5% gains.
- Beijing plans to tighten oversight of industries such as autos and solar accused of unsustainable price-cutting.
- Officials are weighing a cash-for-clunkers style trade-in scheme and broader market reforms to boost domestic demand before key political gatherings.