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China corporate profits lag global peers, AI boom seen as offset
Natixis data compared about 2,300 Chinese firms with 9,000 overseas counterparts and found China profit margins near 4.5% in the first half of 2026 versus about 9.0% globally.
China’s corporate sector is still weaker than it was before the Covid-19 pandemic, but is positioned to benefit from the global artificial intelligence boom due to ample power capacity, according to a Natixis survey and research cited by SCMP Economy.
Natixis said profit margins at Chinese firms stabilized at about 4.5% for the first half of 2026, well below the nearly 9% recorded by global peers.
The report also found returns on capital at Chinese firms hovered around 6% in the same period, compared with more than 11% globally.
The findings were based on a comparison of about 2,300 Chinese firms and 9,000 overseas counterparts, SCMP Economy reported, citing Natixis’ latest China corporate monitor presented on Tuesday.