Chinese shares rebounded on Tuesday as industrial profits logged their first gain in four years.
The Shanghai Composite Index, the main gauge of Chinese stocks, climbed 0.2% to 4,139.90. The Shenzhen Component Index ticked up 0.1% to 14,329.91.
China's industrial profits edged up 0.6% to 7.398 trillion yuan in 2025, the first rise in four years, according to Bloomberg.
The rise "shows the high-tech drive and stepped-up anti-involution measures are starting to work," the report cited analyst Eric Zhu as saying. "Policymakers will need bolder steps to rein in excessive competition and lift the economy out of deflation" to ensure profit recovery in 2026, Zhu added.
Puya Semiconductor Shanghai (SHA:688766) forecasted 2025 attributable net profit of 205 million yuan, down 30% from 292.4 million yuan the previous year. Shares of the semiconductor company jumped 15% Tuesday.
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