Chinese Firms' Profit Margins Lag Global Peers Despite AI Power Surplus
A recent report from the French bank indicated that profit margins for Chinese companies stabilized around 4.5% in the first half of 2026, significantly trailing the nearly 9% seen among their international counterparts.
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According to the latest China corporate monitor released by the French bank, profit margins for companies in China had settled at approximately 4.5 per cent during the first half of 2026, which was substantially lower than the close to 9 per cent achieved by their global peers.
The report further noted that the returns on capital for Chinese firms were around 6 per cent over the same timeframe, contrasting with over 11 per cent globally. These conclusions were drawn from a comparison involving approximately 2,300 Chinese companies and 9,000 overseas companies, as detailed in the South China Morning Post.
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