THE growth of Chinese industrial enterprises' profits accelerated in July, led by high-tech manufacturing companies.

According to the latest data from the National Bureau of Statistics (NBS) on Tuesday, profits of industrial enterprises above the designated size rose by 4.1 percent year on year last month, up 0.5 percentage point from June, marking the second consecutive month of profit growth.

Overall, profits of industrial enterprises increased by 3.6 percent year on year in the first seven months, up 0.1 percentage point from the first half year.

High-tech manufacturing led the way, with the sector's profits soaring by 12.8 percent year on year from January to July. This surge has boosted overall industrial profit growth rate by 2.1 percentage points, the NBS said.

Companies of lithium-ion battery making, semiconductor equipment manufacturing and smart electronic devices manufacturing saw a year-on-year profit increase of 45.6 percent, 16.0 percent and 9.2 percent, respectively, in the first seven months, providing important momentum for driving high-quality industrial growth, according to the NBS.

Yu Weining, an official from the NBS, said the profits of large industrial enterprises in China have continued to increase, but it is important to note that domestic demand remains weak, while the external environment is complex and volatile.

It is necessary to further expand domestic demand, take targeted measures to improve the economic cycle, implement and refine reform measures, and promote the development of new quality productive forces in the industrial sector to enhance the sustained recovery of the manufacturing sector, Yu said.

The data suggests that the effects of the pro-growth macroeconomic policies are starting to show in the industrial sector, with the supply demand relationship in the industrial sector continuing to improve, Zhou Maohua, an economist from China Everbright Bank, told the Global Times on Tuesday.

In particular, the country's high-tech equipment manufacturing sector has seen rapid growth in profits, which reflects the ongoing transformation and upgrading of China's industrial sector, Zhou said.