China’s Industrial Profits Surge in Early 2025, But Stock Markets Decline  

TradingKey – Despite China's 1-4 month industrial profit growth, its stock market failed to gain momentum, continuing a four-day losing streak.  

On Tuesday, May 27, China reported that profits for large-scale industrial enterprises maintained an upward trend, yet stocks continued their downturn.  

- Shanghai Composite Index fell 0.18%, closing at 3,340 points.  

- Shenzhen Component Index dropped 0.61%, ending at 10,029 points.  

- ChiNext Index declined 0.68%, settling at 1,991 points.  

According to China’s National Bureau of Statistics, industrial profits for large-scale enterprises grew 1.4% during the first four months of 2025, accelerating by 0.6 percentage points compared to the January-March period. Among 41 major industries, 23 saw profit growth, while 18 sectors showed relatively flat performance.  

Yu Weining, an industrial statistics expert from the National Bureau of Statistics, commented:  "Industrial profits have steadily recovered in the first four months, showcasing China’s strong industrial resilience and ability to withstand shocks. However, we must acknowledge the continued global uncertainties, weak demand, and falling prices, which remain key constraints on growth."