China’s finance sector expanded faster than manufacturing for the first time in years during the first quarter, supported by strong capital market activity and a broader economic rebound. Gross domestic product grew 5% in the period, with finance and manufacturing both outperforming overall growth, recording year-on-year increases of 6.5% and 6.3%, respectively, according to data from the National Bureau of Statistics.
Finance activity, which includes banking, insurance, and securities, rose to a post-pandemic high after slowing for two consecutive quarters at the end of 2025. Increased initial public offerings and higher stock trading volumes in 2026 contributed to the sector’s acceleration, despite it remaining less than a third the size of China’s manufacturing industry.
Market activity strengthened further as average daily stock turnover in China’s onshore markets climbed during the first quarter, reaching a record high in mid-January based on Bloomberg-compiled data dating back to 2010. A total of 30 companies listed on mainland exchanges during the quarter, raising nearly 26 billion yuan (about US$3.8 billion), up almost 60% compared with the same period last year.
Manufacturing growth remained steady, supported by strong global demand for Chinese products such as electric vehicles and industrial robots. Exports rose 15% year-on-year in the first quarter, indicating continued momentum in external shipments.
Trade indicators also pointed to sustained activity. China’s imports from South Korea, often closely linked with Chinese export demand, increased sharply. In the first 20 days of April, South Korean exports to China rose nearly 71% from a year earlier, slightly faster than the pace recorded in March.
Port data further reflected strong trade flows, with cargo throughput at Chinese ports remaining above last year’s record levels. Volumes increased by about 7% for the three weeks through April 19 compared with the same period in 2025.
Consumer-focused sectors showed weaker performance. Growth in hotels and catering slowed to 4.3% from 5.6% in the final quarter of 2025, indicating softer spending. Construction activity also declined 3.8%, marking the steepest drop since early 2020 and reflecting continued weakness in the property sector.
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