China Industrial Profits Rise Modestly With Commodity Prices.

China's industrial companies experienced a modest increase in profits due to higher commodity prices, providing some relief to miners. However, concerns remain about the sustainability of these gains due to excess capacity in certain sectors. The growth in profits in May was supported by higher commodity prices and solid foreign demand for Chinese goods. Domestic demand, on the other hand, has remained weak, with a deepening housing slump and below-pre-pandemic retail sales growth. The government has been encouraging businesses and households to upgrade machinery and appliances to stimulate consumption. Private companies saw the highest earnings growth, while state-controlled enterprises experienced a decline. [Extracted from the article]

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