(Yicai Global) Nov. 29 -- China’s industrial profit growth resurged for the second consecutive month last month amid rising product prices and policy support to ensure supply.

Profits of industrial enterprises above designated size climbed 24.6 percent from a year ago, the National Bureau of Statistics revealed recently.

From January to October, firms' profits rose 42.4 percent from a year earlier, said the NBS. The average two-year growth rate is 19.7 percent.

But growth is imbalanced, Zheng Houcheng, director at Yingda Securities’ research institute, said to Yicai Global. The mining industry accelerated its pace of increasing but the manufacturing sector slightly narrowed its profit expansion. Moreover, the sectors of electricity, heating, gas, and water supply remained in the negative territory.

During the fourth quarter of each year, profit increases tend to slow moderately, Wu Chaoming, chief economist at Chasing Securities, said to Yicai Global. But annual additions to the producer price index, which measures wholesale prices, are expected to stay above 10 percent from October to December, supporting industrial gains, according to Wu.

However, midstream and downstream companies are facing cost pressures, coupled with supply restrictions of high-emission sectors, slowing production, as well as tamed real estate investing, which may push profit growth down, Wu added.

Last month, the fastest-growing fields involved upstream raw materials. The mining industry boosted its profit growth almost four times in October while the manufacturing sector for raw materials recorded a 56.1 percent increase, with both of the rates rising quickly from September, per Zhu Hong, senior statistician at the NBS.

The coal industry was booming. In October, the industry's profit jumped more than five times from a year ago amid new policies to guarantee energy supply. Non-ferrous metals reported a nearly tripled profit boost while chemical producers increased their gains by nearly 64 percent. The iron and steel industry had a 57.3 percent uptick.

The party was exclusive to state-owned firms. Also private companies accelerated their profit growth, according to Zhu. Last month, the collective sums surged by 28.8 percent from a year ago, rising for the second straight month, due to government support for troubled firms and some companies' new funding, per the official.

Taxes and fees were reduced. The cost of every CNY100 (USD16) of revenue was CNY83.45 last month, down from CNY83.84, according to Zhu. Fees equaled CNY8.22 (USD1.30) of CNY100 of income, down from CNY8.73.

China should strengthen its cross-cycle adjustment of macro policy, said the senior statistician. The country should implement relevant policies to guarantee supply while stabilizing prices, promote a balance between supply and demand, help companies to resolve their difficulties, and facilitate the constant and stable development of the industry and economy, Zhu concluded.

Editor: Xu Wei, Emmi Laine, Xiao Yi