AI-powered contentSome parts of this article are powered by AI.
Share this article
Summary
China's industrial profits rose 14.4% year on year in September and 15.5% to 6.03 trillion yuan in the first nine months, according to the National Bureau of Statistics.
Electronics and raw materials led the gains, while Bloomberg Economics said the broader corporate sector continued to struggle.
CITIC Securities fell after a 20.2% drop in third-quarter net profit, and Hong Kong lagged an AI rally in Japan and South Korea.
Traders across Asia positioned ahead of earnings from Alphabet (GOOGL), Microsoft and Amazon and the Federal Reserve's rate decision.
Gotrade News - China's industrial profits rose 14.4% year on year in September, official data showed, the fastest pace in three months, helped by oil and electronics, yet CITIC Securities slid after a soft third-quarter profit and Hong Kong lagged an AI rally in Tokyo and Seoul on Tuesday, October 27.
According to the National Bureau of Statistics of China, profits at industrial firms above designated size rose 14.4% year on year in September, bringing growth for the first nine months of 2026 to 15.5%, with total profits of 6.03 trillion yuan. As reported by Bloomberg, September's gain accelerated from 4.2% in August and topped the 12% that Bloomberg Economics had forecast.
Factory-gate prices surged 5% in September from a year earlier, the fastest pace since 2022, and soaring oil costs tied to Middle East hostilities helped drive the profit gains, Bloomberg reported. NBS statistician Yu Weining said electronics earnings expanded more than 100% in the first nine months, contributing 9.6 percentage points to overall growth, while raw material industries gained 45%.
The NBS release shows how unevenly those gains were spread across industries:
Profit change, January to September 2026 (year on year, NBS)
Computer, communications and other electronic equipment
+103.8%
Nonferrous metal smelting and rolling
+79.7%
Coal mining and washing
+57.0%
Chemical raw materials and chemical products
+49.2%
Automobile manufacturing
-22.8%
Ferrous metal smelting and rolling
-73.3%
"China's industrial-profit rebound in September likely reflected higher energy and AI hardware prices," Eric Zhu of Bloomberg Economics said, adding: "Outside these segments, the broader corporate sector continued to struggle." Members of the MSCI China Index that have released results have missed consensus earnings forecasts by an average of 9%, according to Bloomberg.
CITIC Securities Falls After Q3 Profit Drops 20.2%
According to Investing.com, CITIC Securities fell 2.4% to HK$20.62 in Hong Kong on Tuesday and nearly 3% in Shanghai after its third-quarter net profit dropped 20.2% to 7.68 billion yuan (about $1.15 billion). That missed the 10.05 billion yuan analysts expected, per LSEG estimates cited in the report.
Investment income fell 45.25% to 17.978 billion yuan in the first nine months, while brokerage fee income rose 34.65% to 14.73 billion yuan, Investing.com said, pointing to sluggish retail trading and weak domestic stock markets.
The CSI 300 entered a bear market in October after an AI stock selloff reversed early gains, and Bloomberg reported that Chinese stocks had lost $2.4 trillion as of late last week.
Nikkei Rises 1.7%, Kospi Gains About 4% on AI Rally
The Nikkei 225 rose 1.7% to 63,232.37 as semiconductor and technology stocks rebounded after Monday's AI and chip stock selloff, and the Kospi gained around 4% as SK Hynix and Samsung Electronics rallied, according to The Market Reporter.
The Hang Seng and the Shanghai Composite edged lower as investors stayed cautious ahead of policy and central bank developments, per the same report. Australia's ASX 200 closed 0.5% higher at 8,850.1, its strongest finish in about seven weeks.
This article is for education and information only and is not investment advice. Investment decisions are yours to make after your own research.
Gotrade is the trading name of Gotrade Securities Inc., which is registered with and supervised by the Labuan Financial Services Authority (LFSA). This content is for educational purposes only and does not constitute financial advice. Always do your own research (DYOR) before investing.
M. Alfathan Rahman is a content writer with over 3 years of experience developing digital content strategies across various industries, including fintech. He has experience producing content for tax-related websites and financial education platforms. His focus areas include data research, and crafting financial articles that are informative, accurate, and accessible to investors of all experience levels.
Hendrie Saputra holds a Master of Business Administration (MBA) with a concentration in Business Risk & Finance, along with professional experience in finance, marketing, and project management. He is experienced in analyzing market data and developing research-driven business strategies.
