In July, China's manufacturing sector witnessed a 6.8% year-on-year increase in profits, marking a 5.4 percentage point surge from June. This contributed 3.6 percentage points to the growth of profits among industrial enterprises above a designated size. Despite a 1.5% year-on-year decline in profits for these larger industrial enterprises, the rate of decline has narrowed by 2.8 percentage points compared to June. High-tech manufacturing stood out with an impressive 18.9% growth in profits, particularly in sectors such as aerospace equipment manufacturing and integrated circuit manufacturing. Furthermore, the "two new" policies have fueled rapid profit growth in industries including electronic equipment and consumer goods manufacturing. To support the trade-in policy, the country has issued the third batch of ultra-long-term special treasury bonds amounting to 69 billion yuan, with the fourth batch expected to be available in October. Analysts are optimistic that the combined impact of these policies will aid in the recovery of industrial enterprise profits, but they caution that uncertainties in external demand continue to pose challenges, necessitating further stimulus to effective demand.