China's industrial profit margin rose from 6.2 percent in June to 6.9 percent in July, according to data presented at Beijing, China on Saturday, August 27.

According to the data, in July, profits rose by 11 percent to 523 billion yuan. This is the second highest growth of the year.

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June was the first sudden increase and stood at a 5.1 percent.

According to the National Bureau of Statistics (NBS), industrial companies with more than 20 million yuan ($3 million) annual revenue,enjoyed greater profits.

According to He Ping, an official with NBS Department of Industrial Statistics, the growth could be because of a variety of reasons.

"Last month, the data showed that the average for those companies was 86.08 yuan for each 100 yuan main business revenue, down from 0.42 yuan from July," he explained.

Two key sectors stood out in the industrial companies; the ferrous and non-ferrous companies, which accounted for 47.5 percent of profit growth. Each made a profit of 14.83 billion ($2.2 billion) and 6 billion yuan ($898 million) respectively.

Most industries registered a growth in profit. Statistics shows that 30 of the 41 industries surveyed posted a profitable business year.

Public firms were not lucky during the period having recorded a 6.1 percent loss. Private firms, on the other hand, registered a profit of 8.7 percent.

"The main business revenue of industrial companies rose by 3.3 percent in the seven months, and their total assets rose by 5.7 percent to 100.2 trillion yuan by the end of July," NBS officials said.

According to He, problems such as rising management fees and overcapacity prevented further profit growth.

"Although industrial profit growth accelerated, market demand did not witness substantial improvement," he noted.

Tagschina, NBS, Beijing, He Ping