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Profits at China's state-owned companies rose sharply in the first half of this year, rising 31.5 percent to 753.5 billion yuan ($99.7 billion), reports said on Friday.

Companies owned by the central government saw profits rise 20.2 percent to 541.8 billion yuan ($71.7 billion), the Xinhua News Agency said, citing the Finance Ministry. Profits at companies owned by lower-level governments rose 36.5 percent to 211.7 billion yuan ($28 billion).

The government is trying to create an elite group of 30 to 50 national-level companies that are to be industry leaders in banking, oil and other fields.

Hundreds of other companies have been shut down or spun off to fend for themselves.

Private Chinese companies also have seen profits rise amid a boom that saw the economy expand by 11.9 percent last quarter.