China's Industrial Profits and FDI Highlight Diverging Trends In September

Li Chen
27 Oct, 2025
Hong Kong

China's markets advanced on Monday, and investors reviewed the latest batch of economic updates. 

The Hang Seng Index rose 1%, and the mainland-focused CSI 300 index advanced 1.1% as investors hoped a potential US-China trade deal could ease tensions.

Foreign direct investment in China decreased 10.4% to 573.5 billion yuan, or $80.9 billion, in the first nine months of 2025 amid global uncertainty.

The service sector attracted 410.9 billion yuan, and the manufacturing sector drew 150.1 billion yuan, amid a 155% surge in investments in the e-commerce sector. 

Overall, high-tech industries attracted a total of 170.8 billion yuan in the period, the Ministry of Commerce said in its monthly update. 

Regionally, investments increased by 55.5% from Japan, 48.7% from the UAE, 21% from the UK, and 19.7% from Switzerland. 

Foreign direct investment in September alone rose 11.2% from a year ago, as US-China trade tensions eased. 

China's industrial profit increased 3.2% to 5.4 trillion yuan in the first nine months of 2025, the National Bureau of Statistics reported on Monday. 

Industrial profit accelerated from an increase of 0.9% in the previous period, as US-China tensions eased and private sector activities rebounded. 

Industrial profit soared 21.6% from a year ago, faster than the 20.4% annual rate in August, the statistical agency reported. 

The manufacturing sector's earnings rose 9.9% in the nine-month period to September, offsetting the 51.1% decrease in coal mining and a 13.3% fall in natural gas, 5.9% in textiles, and a 4.4% decrease in chemicals.  

 

China Indexes and Stocks

The Hang Seng Index increased 1% to 26,404.51, and the mainland-focused CSI 300 index edged 1.1% to 4,709.92. 

E-commerce and advanced semiconductor-related stocks led gainers in Hong Kong. 

Alibaba Group Holding increased 3% to HK $173.50, Tencent Holdings Ltd. advanced 2.4% to HK $653.0, and Meituan jumped 1.7% to HK $102.30.

Nongfu Spring Water rose 0.2% to HK $54.05, Pop Mart International Group gained 1.3% to HK $233.40, and ANTA Sports Products decreased 0.5% to HK $87.90.