China's Industrial Profit Growth Moderates In June, Oil Falls 6%

Li Chen
27 Jul, 2026
Hong Kong

China's indexes lacked direction in Monday's trading, and investors awaited the market debut of the memory-chip maker following the recent selloff in AI-related stocks.  

The Hang Seng index increased 0.8%, the mainland-focused CSI 300 Index inched higher 0.3%, and crude oil prices fell sharply after the U.S. and Iran suspended strikes against each other following fourteen days of fighting. 

The Brent crude oil dropped 6.2% to $92.25 a barrel as the U.S. struggled to continue missile attacks following the shortage of critical arms and related ammunition. 

China's industrial profit advanced 18.7% to 3.95 trillion yuan in the first half of 2026, slightly lower than the 18.8% increase in the January-May period. 

Resilient exports overcame the softness in domestic demand, highlighting the economy's uneven recovery despite the government's efforts to boost consumption. 

Profits at state-controlled firms increased 17.9% to 1.3 trillion yuan, while the joint-stock companies reported a stronger 24.7% rise to 3.04 trillion yuan, and private firms reported a 13% increase in profit to 965.6 billion yuan. 

The continued rise in rare-earth and precious metals prices supported the surge in profit for mining companies, noted the report released by the National Bureau of Statistics. 

Profits at mining companies soared 33.5% and manufacturing companies increased 20.1%, but declined 4.2% at utilities. 

Profits in June increased 15.1% from a year ago, slower than a 21.1% rise in May.   

 

China Indexes and Stocks 

The Hang Seng Index increased 0.8% to 25,151.33, and the mainland-focused CSI 300 Index gained 0.3% to 4,661.02. 

PetroChina decreased 2.7% to HK $9.93, CNOOC decreased 1.8% to $23.14, and China Petroleum and Chemical added 0.7% to HK $4.30.

NAURA Technology Group decreased 0.1% to ¥756.22, Eoptolink Technology added 0.2% to ¥479.47, and Zhongji Innolight edged down a fraction to ¥1,046.49. 

CXMT is set to commence its trading after the memory chip maker completed its initial public offering, and the company raised 57.96 billion yuan, selling shares at 8.66 yuan each.