China's industrial earnings jumped to 15.5% in May

But growth's not quite impressive.

According to Bank of America Merrill Lynch, „China's industrial earnings growth in May (released by the NBS) accelerated to 15.5% yoy in May from 9.3% yoy in April, largely on a low comparison base.

Here's more:

With regard to the big picture, it still points to an early stage of a weak recovery: Downstream sectors are seeing their earnings continue to improve, especially for those early cycle sectors such as auto and electronic manufacturing.

But such positive signal has yet transmitted to the upstream sectors, which keep losing money on falling commodity prices. For the midstream sectors, they benefit from falling input prices but meanwhile suffer from over-capacity under the current sluggish demand (especially for metal and mining sectors).