Spike in profits suggests stability

China's industrial firms' profits have jumped at their fastest rate since July 2014, adding to evidence of a continued stabilization in manufacturing.

Industrial profits rose 11.1 percent in March compared with a year earlier, rising to 561.2 billion yuan ($86.4 billion) in March. This compares with a 4.8 percent rise in the first two months of the year, the National Bureau of Statistics said on Wednesday.

The acceleration is mainly due to growth in sales, milder producer price deflation, cost cuts and gains from investments, the NBS said in a statement.