The index, ending a streak of three consecutive months of decline, came in at 89.1 in June, up 0.2 points month-on-month, according to the China Association of Small and Medium Enterprises.

The index contains multiple sub-indexes to gauge the performances and expectations of SMEs. A reading below 100 indicates dented vitality.

Last month, the sub-indexes for industry, construction, transportation and storage, and real estate, as well as the information transmission and software industry increased, while those for wholesale and retail, social services, as well as the accommodation and catering industry, retreated from a month earlier.

Thanks to the country's pro-growth measures, SMEs were more confident in business development. This was reflected in the sub-index gauging sentiment towards the macroeconomy, which edged up 0.1 points to reach 98.4 points in June, according to the association.

The association has, however, cautioned about challenges facing the SMEs, including the high corporate costs and rising financial constraints, calling for further expanding effective demand and improving the business environment.