Chinese listed firms' profits up 22% but quarter report losses; AI chips surge

Aggregate net profit of ~5,400 mainland-listed Chinese companies rose 22% YoY in H1 2026 to ¥1.9T, but a quarter of firms reported net losses, reflecting a K-shaped recovery. AI-driven chip demand boosted semiconductor earnings, while real estate, autos, and food sectors contracted amid sluggish growth and price wars. The divergence signals uneven corporate health and potential stress in broader economy.