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BEIJING - The performance of China's shopping centers improved in 2017 amid fierce competition from online shopping platforms, a new index showed.

The China Shopping Center Development Index rose 1.3 points to 68.5 in 2017, showing market recovery and sound momentum in the sector, according to a report issued by the Ministry of Commerce.

A reading above 50 indicates expansion, while a reading below 50 represents contraction.

Thanks to their larger markets, first-tier cities saw higher development indexes than smaller cities.

The sub-index for the current situation rose 0.9 points to 65.1, while the sub-index for future expectations rose 1.8 points to 73.5, pointing to strengthening confidence from shopping center operators, the report said.

More than 70 percent of business owners expressed optimism in the continued growth of rents, sales, and profits, the report said, forecasting that the sound momentum of the sector will continue this year due to steady economic growth and the country's consumption upgrading.

China's GDP expanded 6.8 percent in the first quarter, higher than the government's annual target of around 6.5 percent. Data for the second quarter is scheduled to be released on Monday.