Key Takeaways
- China's industrial profits surged by 20.4% year-on-year in August, reversing a four-month decline and pushing year-to-date growth to 0.9%. This rebound is largely attributed to robust performance in the equipment manufacturing sector and government macroeconomic policies.
- BRICS foreign ministers voiced strong concerns over rising protectionism and unilateral trade measures, particularly from the U.S., warning that such actions threaten global commerce and marginalize the Global South.
- ASICS (7936.T) is enhancing its shareholder benefits by adding online discounts for its luxury brand Onitsuka Tiger, alongside existing perks, following a 4-for-1 stock split in June 2025.
- China is deploying 2,000 workers to Europe to construct advanced battery factories, notably for companies like CATL in partnership with Stellantis, a move that highlights Europe's skill gaps and China's strategic leverage in the burgeoning EV battery sector.
China's industrial sector demonstrated a significant turnaround in August, with profits at major industrial firms jumping 20.4% year-on-year, according to data from the National Bureau of Statistics. This notable increase marks the first rise in four months, pushing total industrial profits for the first eight months of 2025 to a 0.9% year-on-year growth, defying a Bloomberg Economics forecast of a 1.6% drop. The robust performance of the equipment manufacturing sector, which saw profits surge 7.2% in the first eight months, was a primary driver, contributing significantly to the overall recovery.
However, the broader economic picture for China remains complex. While industrial profits rebounded, industrial output growth in August slowed to 5.2% year-on-year, missing expectations and easing from July's 5.7% rise. This deceleration, coupled with weaker-than-expected retail sales growth of 3.4% in August, indicates persistent challenges from softening domestic demand and ongoing U.S. trade tariffs. The National Bureau of Statistics statistician Yu Weining acknowledged the complex external environment and still-weak domestic demand, stressing the need for further expansion of internal consumption and market regulation.
Meanwhile, geopolitical trade tensions remain a central concern for emerging economies. BRICS foreign ministers, meeting on the sidelines of the 80th United Nations General Assembly, collectively voiced serious apprehension over the proliferation of protectionist measures and unilateral trade actions. They specifically criticized the rising tariffs and non-tariff barriers, which they argue distort trade, are inconsistent with WTO rules, and risk fragmenting global commerce while marginalizing the Global South. India, preparing for its 2026 BRICS Chairship, underscored the bloc's role in defending the multilateral trading system against these "onslaughts".
In a strategic move to bolster Europe's burgeoning electric vehicle (EV) industry, China is dispatching 2,000 workers to the continent to construct advanced battery factories. This initiative, likened to China's infrastructure development efforts in Africa, highlights Europe's skills and know-how gaps in battery manufacturing. Notably, Chinese battery giant CATL plans to send workers to establish and adapt a €4 billion battery plant in Spain, a joint venture with Stellantis (STLA). This influx of Chinese expertise and labor is crucial for Europe's auto industry, but also raises questions about potential technological dependence on China, which views battery production as a source of strategic leverage. Chinese EV companies like BYD (1211.HK) are also expanding their local production footprint in Europe to mitigate tariff impacts and enhance supply chain efficiency.
In corporate news, Japanese sportswear giant ASICS (7936.T) is set to enhance its shareholder benefits program. Following a 4-for-1 stock split in June 2025, the company will introduce online discount coupons for its luxury brand, Onitsuka Tiger, to its shareholder perks. The updated program will replace physical coupons with digital electronic tickets for both online and physical stores, improving convenience. Shareholders holding at least 100 shares will receive 10 coupons, with discounts ranging from 25% to 40% based on the number of shares held and tenure. This move aims to attract new investors and reward existing shareholders, further integrating its popular brands into the loyalty scheme.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.