China's industrial sector posted strong profit growth in the first quarter of 2026 as the government's proactive macro policies helped cushion the impact of a complex economic environment and boosted momentum in high-end manufacturing, official data showed on Monday.

Profits of China's major industrial firms increased 15.5 percent year-on-year to reach 1.696 trillion yuan ($247.3 billion) during the January-March period, accelerating by 0.3 percentage points from the growth posted in the first two months of the year, according to data from the National Bureau of Statistics (NBS).

In March alone, profits at major industrial companies increased 15.8 percent from a year earlier, with the pace of growth accelerating by 0.6 percentage points from the January-February period.

Chinese authorities stepped up macroeconomic support by rolling out more proactive policies to stabilize growth, helping the industrial sector recover steadily and improving corporate profitability, noted NBS statistician Yu Weining.

Equipment manufacturing remained a major driver of profit growth. Profits in the sector climbed 21 percent in the first quarter, contributing 6.8 percentage points to overall industrial profit growth. The sector accounted for 33.7 percent of total profits among major industrial firms, up 1.7 percentage points from a year earlier.

Within the sector, profits in the electronics industry surged 124.5 percent, supported by strong production and recovering prices. Profits in railway, shipbuilding and aerospace manufacturing rose 16.7 percent, accelerating by 5.3 percentage points from the January-February period.

High-tech manufacturing also posted robust gains, with profits jumping 47.4 percent in the first quarter and contributing 7.9 percentage points to overall industrial profit growth.

Rapid development in artificial intelligence and semiconductor-related industries helped drive profits in optical fiber manufacturing, optoelectronic device manufacturing and display device manufacturing up 336.8 percent, 43 percent and 36.3 percent, respectively.

Rising demand for smart products also boosted profits in intelligent drone manufacturing and other smart consumer equipment manufacturing by 53.8 percent and 67.3 percent, respectively, the data showed.

Despite the improvement, the NBS warned that uncertainties in the external environment remain elevated and that imbalances between supply and demand at home still need to be addressed.