Policy support helps stabilize industrial profit

More measures expected to strengthen property market, boost consumption

Profits at China's major industrial enterprises declined at a slower pace in June, thanks to supportive government measures to boost domestic demand and ease burdens on companies, although still-weak demand continued to squeeze margins.

Despite the improvement in the decline of industrial profits, experts said the foundation for recovery is not yet solid amid domestic structural issues and external uncertainties, reinforcing hopes for further policy support to revive the world's second-largest economy.

As the market eagerly waits for a key meeting of top policymakers, usually held in July, to launch proactive measures to consolidate recovery momentum and set the tone for the economic policy for the second half, experts said they expect China's top leadership to sharpen its focus on expanding domestic demand, spurring consumption and stabilizing property and stock markets by announcing a slew of incremental measures.