Chinese industrial companies' profit gains surged in October and turned positive for the year as factory output accelerated and export growth picked up following a seven-quarter economic slowdown.

The National Bureau of Statistics said that net income gained 20.5% from a year earlier to CNY 500.1 billion (USD 80.4 billion). Profits in September rose 7.8%, the first gain in six months.

Mr Ding Shuang senior economist for China at Citigroup Inc in Hong Kong, who previously worked at the country's central bank said that "The improved industrial profitability further confirms that the Chinese economy is stabilizing and gaining growth momentum. The profit number, together with other economic indicators, shows there is no need for the government to launch new easing policies."

According to a research report, Citigroup raised its 2013 GDP growth forecast for China to 7.8% from a previous estimate of 7.6%