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. 

ChangXin Memory Technology soared more than 470% in the first day of trading on the Shanghai Stock Exchange, and traded at 49.50 yuan. 

CXMT, the memory chip maker, completed its initial public offering, and the company raised 57.96 billion yuan, selling shares at 8.66 yuan each. 

The company said first quarter revenue soared 719% to 50.8 billion yuan, and net income attributable to shareholders rose to 24.8 billion yuan, as memory prices surged between 93% and 98% from a year ago.