AmCham Shanghai report shows sharp rebound in business confidence among member companies

The 2026 China Business Report, released on Thursday by the American Chamber of Commerce in Shanghai (AmCham Shanghai), revealed a significant rebound in business confidence among its surveyed member companies operating in China.

Business confidence bounced back markedly, as 58 percent of respondents expressed optimism about China's five-year business outlook, up 17 percentage points year on year, the report said.

Profitability rebounded to its highest level since 2019, with 78 percent of respondents profitable in 2025, an increase of 7 percentage points from the 2024 level, according to the report.

As business confidence rebounded and more companies reported profits, investment confidence in China also strengthened, resulting in 28 percent of respondents increasing investment in China last year, the highest level in four years.

Improved market sentiment is also reflected in a positive assessment of China's business environment. Fifty-five percent of surveyed companies said the business environment in China is transparent, up 7 percentage points year on year.

Jeffrey Lehman, chair of AmCham Shanghai, attributed the positive change to eased bilateral tensions and shared expectations for more stable and reciprocal economic and trade relationship, as the two leaders of states reaffirmed multiple times in the past year.

"We do our surveys In June, and so in June of 2025, there was a lot of anxiety among our members about the geopolitical situation. After that, we had the meeting of the leaders in Busan. We had the summit in Beijing in May, the agreement between the two countries that they would try to create a constructive relationship of strategic stability based on fairness and reciprocity. And that is very reassuring to our members because that suggests that there will be a stable environment in which they can operate well. If anxiety about geopolitics slips, that means then, that the number one concern is the continuing improvement in the quality of domestic competition," he said.

The report is based on AmCham Shanghai's 2026 China Business Survey of 262 member companies.

AmCham Shanghai report shows sharp rebound in business confidence among member companies

China's top financial regulator said Thursday it will roll out a combination of measures to foster a healthier industry ecosystem, pledging to root out practices such as price wars and irregular rebate schemes.

Cong Lin, deputy head of the National Financial Regulatory Administration, made the remarks at a press conference in Beijing held by the State Council Information Office.

"The administration will guide financial institutions to develop a proper understanding of what it means to perform well, operate soundly and manage risk effectively, correcting their misguided views about achievements and obsession with scale. The goal is to shift the industry away from a relentless pursuit of speed and size toward a focus on quality and efficiency, while steadily sharpening its core competitiveness. We will also crack down on practices such as price wars, irregular commission rebates, and high-interest with high-rebate schemes," Cong said.

Authorities will take a tougher stance against disorderly competition among financial institutions, such as aggressive marketing and promotional strategies to attract customers.

"We will also crack down on practices such as price wars, irregular commission rebates, and high-interest with high-rebate schemes," said the official.

China's financial regulator vows to crack down on disorderly price wars