Industrial profits grew 11.5 percent on a yearly basis in June, following a 6 percent rise in May.

Profits of steel 35.3 percent and that of non-ferrous metals grew 24.1 percent in June.

Nonetheless, the statistical office said the sustainability of industrial profits is uncertain, the statistical office.

In the first half of 2020, industrial profits declined 12.8 percent from the same period last year.

Iris Pang, an economist at ING said the decline in Covid-19 cases and relaxation of restrictions are positive for domestic demand and for related manufacturing activity.

Some recovery from Covid-19 in parts of the rest of the world will also have helped China's manufacturing output and profitability in June, the economist said.