Retail sales growth picked up to 10.8 percent in the second quarter from 10.0 percent in the first quarter, a Reuters calculation based on official data showed.
The performance was ahead of the government's target figure of "around 6.5 per cent" and was also better than most analysts' predictions.
China's major stock indexes recouped sharp early losses on Monday as latest growth data from the world's second largest economy surprised on the upside, buoying earnings prospects for the country's companies.
On a quarter-on-quarter basis, the GDP rose 1.7 percent in the second quarter.
"Overall, the economy continued to show steady progress in the first half.but global instability and uncertainties are still relatively large, and the domestic long-term buildup of structural imbalances remains", said the statistics bureau in a statement. The nation's solid growth reinforces recoveries for commodity exporters and keeps 2017's pickup in global growth on track, said William Adams, senior worldwide economist at PNC Financial Services Group in Pittsburgh.
While China's first-half economic achievement was "hard won", more positive changes in the second half are expected, National Statistics Bureau spokesman Xing Zhihong told reporters.
President Xi Jinping called for tougher regulations to crack down on financial risks during a National Financial Work Conference, which sets the tone for reforms, according to the official Xinhua news agency.
What that translates to is tighter control over the financial system and the economy, which could pose further strains as China's economy transitions to new sources of growth.
The services sector led the growth with an increase of 7.7 percent, while the manufacturing and the agriculture added 6.4 percent and 3.5 percent separately.
The agency also published the figures of real estate investment from January to June, which showed a decelerating trend as it is 0.6 points less than the figure recorded during the first quarter of the year, although it expanded by 8.5 per cent year-on-year.