China's commodity firms are minting money; other sectors are suffering | Gavekal Research

China’s industrial profits rose to 24.7% YoY in April from 15.8% in March. That substantial gain masks highly uneven profitability: while upstream sectors, especially oil and gas, have benefitted from the oil price shock, total profit growth outside of the commodity complex slowed. Moreover, profits are declining in YoY terms for firms outside of the commodities and electronics industries. And after removing price effects, China’s real industrial activity does not appear to be improving...more