Industrial profits show economic resilience

Profits at China's major industrial companies returned to growth in April amid strong policy stimulus and a continued recovery in market demand, adding signs that the world's second-largest economy is on a firmer footing.

While the latest indicators point to the stabilization of the economy, China's economic activity was likely mixed with an uneven recovery across sectors, underscoring the need for further stimulus measures in fiscal, monetary and regulatory policies, analysts said.

They said it is advisable for authorities to speed up the issuance of local government special bonds, accelerate the implementation of key projects funded by fiscal spending, further cut the banks' reserve requirement ratio and interest rates, and introduce more property easing policies.