China JanFeb industrial profits 10.2 yy vs 2.3 in 2023
Positive profits data join upbeat indicators released earlier
Property sluggishness remains a drag on overall economy

BEIJING, March 27 Reuters China39;s industrial firms posted higher profits in the opening months of the year, official data showed on Wednesday, reinforcing signs that an economic recovery was gaining traction despite persistent sluggishness in the property sector.

Profits at China39;s industrial firms jumped 10.2 in the first two months from a year earlier, National Bureau of Statistics NBS data showed, following a 2.3 profit decline for the whole of 2023.

The surge comes on the heels of upbeat indicators earlier this month that suggest a stabilisation in Asia39;s largest economy. But overall gains remain tempered by the persistent fragility in China39;s property market, pointing to a divergence in the country39;s postpandemic recovery.

After an upside surprise to industrial production to start the year, a further recovery of industrial profits sends another signal that we are indeed seeing a gradual recovery after a bottoming out last year, said Lynn Song, chief economist for Greater China at ING.

If the recovery of manufacturing continues, it would contribute toward reaching the 2024 growth target, but more supportive policies are still needed to sustain the momentum and recovery.

Stateowned firms recorded a 0.5 rise in earnings in JanuaryFebruary, foreign firms saw a 31.2 gain while…