Chinese industries showed a slight growth in the month of August, but the economic growth of the world's second largest economy remains average, according to a recent survey.

The survey may have an impact on the investors as many believe that China's central bank may choose to remain with the current interest rate. If so, the economy would be more reliant on heavy industries or government spending.

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China's official Purchasing Managers Index rose above the 50 point mark at 50.4 in August outdoing July's 49.9 reading.

Factory output also maintained the 50 point mark after it rose from 52.1 to 52.6 between the two months. The total new orders also experienced significant growth from 50.4 to 51.3.

New export orders saw a moderate increase, but remained below the mark with the index standing at 49.7, up from 49 in July.

Profits for industrial firms grew in July, according to data presented on Saturday. This has been mainly attributed to government projects that helped to ease financial strains for some companies.

Demand for commodities was not a factor in the profit. It was rather the rebounding price of raw materials that triggered the improvement.

A sign that truly the business environment was still stiff was the continued stuff retrenchment. The employment sub-index moved gradually to 48.4 from 48.2.

China is in the process of quickening the process of cutting steel and coal capacity in the coming months.

According to the survey, large companies still outdid small companies in performance. Their sub-index stood at 47.4 for small companies and 51.8 for large companies.

Tagschina, China markets