China industrial profits rebound in December as price pressures ease

China's industrial profits rose 5.3% year-on-year in December, surpassing expectations of an 11% decline. This rebound, ending a two-month contraction, indicates easing deflationary pressures, with producer prices at their lowest annual fall in over a year. For 2025, profits increased 0.6%, marking the first annual rise since 2021. While this growth is modest, it signals potential stabilization in the industrial sector, though analysts warn that sustainability hinges on demand recovery and continued easing of price deflation.