Profits at these firms rose to 1.5 trillion yuan (€194.3 billion) in the first three months of 2024, official data showed.

The NBS attributed the increase to supportive macroeconomic policies that have boosted demand, which it said lifted profits by 2.3%.

Improved industrial and business revenues have created favourable conditions for profit growth, said NBS statistician Yu Weining.

In 2023, profits at China's industrial firms fell 2.3% year-on-year, even as demand "gradually recovered", the bureau said.

The NBS only includes industrial firms with annual revenue of more than 20 million yuan (€2.7 million) in its calculation.

Profits at these industrial firms have now risen for three consecutive quarters, continuing a recovery trend that began after the end of the Covid-19 pandemic, Yu said.

China's economy grew 5.3% in the first quarter of 2024, boosted by government stimulus measures and recovering demand.

The expansion in the world's second-largest economy between January and March beat analysts' forecasts of about 4.8%, according to official data released on 16 April.

Compared with the previous quarter, growth was 1.6%.

China's economy has struggled to recover from the pandemic amid weak demand and a liquidity crisis in the property sector.

The economic data came days after China reported a decline in imports and exports in March, as well as easing inflation after months of deflationary pressure.

Industrial output rose 6.1% in the first quarter, while retail sales grew 4.7% compared with the same period last year.

Fixed-asset investment in the first three months of the year expanded by 4.5% year-on-year.

Policymakers have rolled out a series of fiscal and monetary policy measures as Beijing looks to boost the economy. China has set a 5% GDP growth target for 2024.

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