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China’s industrial profits grow at slowest pace this year

China's industrial profits have reached their slowest growth rate of the year, revealing a stark economic divide between sectors.

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The brief

Industrial profit growth in China slowed in June, marking the lowest pace recorded so far this year. While exports are cushioning an uneven recovery, retreating oil prices have reduced earnings lift, according to reports from CNBC and Reuters.

Coverage from the Financial Times and Bloomberg highlights a widening economic split. Despite the general slowdown, chipmakers have seen a profit jump of 2,580%.

The data was released by Yu Weining, chief statistician of the Department of Industry at the National Bureau of Statistics. Future developments depend on whether exports can continue to offset the uneven recovery and how fluctuating oil prices impact industrial earnings.

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Quick answers

How has the chipmaking sector performed relative to the general trend?

While overall industrial profit growth is at its slowest pace this year, chipmakers experienced a profit jump of 2,580%.

What factors contributed to the slowdown in June?

CNBC reports that retreating oil prices sapped earnings lift.

What is mitigating the impact of the uneven recovery?

According to Reuters, exports are helping to cushion the recovery process.

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