China's industrial profits grew quickly in August. Automobiles, steel, and oil sectors led the gains. The National Bureau of Statistics says total profits hit 535 billion yuan last month, up 19.5 percent from a year ago.

In the first eight months, industrial profits reached four trillion yuan, rising 8.4 percent year on year. State-owned firms reaped 746 billion yuan profits, down 2.1 percent, while private companies gained 1.4 trillion yuan, up 8.4 percent. Foreign-invested businesses booked over one trillion yuan profits, rising 10 percent.

The data covers large firms with annual revenues of more than 20 million yuan from their main operations, and is deemed as key to gauging the country's industrial health.

Analysts say the country's economic shift is taking effect, as inventory was cut and businesses profitability firmed. But they cautioned that the sharp monthly rise is largely due to the low base number of last year. And they worry the low external demand and industry with overcapacity will keep clouding industrial growth.