How have key industries like oil and power contributed to growth?

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Key Industries Showed Significant Profit Recoveries in May, Aiding Overall Industrial Growth

Profits for China's industrial firms experienced a year-on-year increase of 6 per cent in May, reaching 582.3 billion yuan. This rebound, the first monthly gain in six months, was significantly bolstered by substantial profit recoveries in crucial sectors such as oil refining, power, chemicals, and steel. The oil refinery sector, in particular, swung from a loss of 21.8 billion yuan in April to a profit of 11.6 billion yuan in May, marking an 8.9 per cent year-on-year increase.
Oil Refinery Sector Rebounds Strongly

The oil refinery sector demonstrated a notable turnaround in May, achieving a profit of 11.6 billion yuan. This represents an 8.9 per cent rise compared to the same period last year and signifies a dramatic shift from the preceding month, when the sector registered a loss amounting to 21.8 billion yuan. This recovery played a crucial role in lifting overall industrial profits.
Power Sector Experiences Renewed Growth

Similarly, the power sector contributed positively to the industrial profit landscape in May, with profits growing by 10.9 per cent. This growth contrasts sharply with the performance in April, where the sector recorded a decline of 15.7 per cent. The turnaround in the power industry underscores the broader trend of recovery across key industrial segments.
Broader Industry Support for Profitability

May's overall profit growth was also supported by recoveries in the chemical and steel industries, though specific figures for these sectors were not detailed in the same manner as oil and power. These combined improvements across multiple key industries created a more favourable environment for industrial firm earnings.
Factors Contributing to Profitability Gains

Beyond sector-specific recoveries, the broader profit growth in May was attributed to several factors. These include easing cost pressures, improvements in profit margins, the positive impact of policy stimulus measures, and higher investment returns. These underlying economic and policy drivers facilitated the improved financial performance of industrial firms.

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How have key industries like oil and power contributed to growth?

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