{
  "id": 4971068,
  "title": "China’s tech push fuels fastest profit growth in 4 years amid signs of economic divide",
  "url": "https://urgent.news/2026/09/02/chinas-tech-push-fuels-fastest-profit-growth-in-4-years-amid-signs-of-4971068",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-02T00:00:18.000Z",
  "source": {
    "name": "SCMP Business",
    "slug": "scmp-business",
    "url": "https://www.scmp.com/business/china-business/article/3365975/chinas-tech-push-fuels-fastest-profit-growth-4-years-amid-signs-economic-divide"
  },
  "original_language": "en",
  "account": "The latest earnings season has revealed a remarkable surge in profit growth for Chinese listed companies, marking the fastest pace in four years according to a report by the China Association for Public Companies. The driving force behind this acceleration is a convergence of factors, chiefly demand for artificial intelligence (AI), and an emphasis on domestic technological substitution. This transformation is reflective of China's ongoing economic shift away from credit-fueled expansion, and towards a more technology-oriented growth model. The issue is particularly stark when comparing the performance of companies listed on the Shanghai Stock Exchange's Star Market, and those on the ChiNext board in Shenzhen. The Star Market outperformed its counterpart, with profits leaping over four times from a year earlier in the half-year period to June, while ChiNext companies experienced a 33% increase. This disparity underscores Beijing's strategic pivot towards technology, a response to the global AI race against the US. The report further highlights the strategic investments in tech and high-end manufacturing by leading Chinese firms. Companies like ChangXin Memory Technologies (CXMT) and Cambricon Technologies, which have tapped capital markets to bolster their operations, have been instrumental in this burgeoning trend. CXMT, the most valuable firm on the Star Market, posted a profit of 77.6 billion yuan in the first half, marking a significant turnaround from a loss a year prior. This robust earnings growth has been mirrored in the performance of these companies' stocks, with the Star Market 50 index climbing 23% this year, surpassing the underwhelming CSI 300 Index. The trend is expected to continue, with investors anticipating further support from Beijing for the tech sector, rather than a blanket stimulus initiative. The report concludes that the swift growth in tech-related profits is indicative of the \"K-shaped economy\" in China, with significant disparities between sectors and industries.",
  "summary": "Artificial intelligence demand and technological domestic substitution drove profit growth for Chinese listed companies to its fastest pace in four years in the first half, underscoring the nation’s K-shaped economy as it transitions away from credit-fuelled expansion. Profit for firms on the chip-heavy Star Market under the Shanghai Stock Exchange surged more than fourfold from a year earlier in…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 5,
    "also_reported_by": [
      {
        "outlet": "SCMP Tech",
        "title": "China’s tech push fuels fastest profit growth in 4 years amid signs of economic divide",
        "url": "https://urgent.news/2026/09/02/chinas-tech-push-fuels-fastest-profit-growth-in-4-years-amid-signs-of",
        "published": "2026-09-02T00:00:18.000Z"
      },
      {
        "outlet": "Investing.com",
        "title": "Exclusive-Honda tells suppliers to cut costs in $9 billion push to fend off China, documents show",
        "url": "https://urgent.news/2026/09/02/exclusive-honda-tells-suppliers-to-cut-costs-in-9-billion-push-to",
        "published": "2026-09-02T03:36:24.000Z"
      },
      {
        "outlet": "New Straits Times",
        "title": "Honda tells suppliers to cut costs in US$9bil push to fend off China",
        "url": "https://urgent.news/2026/09/02/honda-tells-suppliers-to-cut-costs-in-us-9bil-push-to-fend-off-china",
        "published": "2026-09-02T04:24:04.000Z"
      },
      {
        "outlet": "The Business Times - Companies & Markets",
        "title": "Honda tells suppliers to cut costs in US$9 billion push to fend off China, documents show",
        "url": "https://urgent.news/2026/09/02/honda-tells-suppliers-to-cut-costs-in-us-9-billion-push-to-fend-off",
        "published": "2026-09-02T04:32:11.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}