The China Caixin services purchasing managers' index (PMI) came in at 51.8 for April, continuing to show expansion but marking a moderation from 52.2 in March. A reading above 50 indicates activity is growing, while one below that level suggests a contraction. The Caixin reading is broadly in line with the official services PMI, released at the weekend, which came in at 53.5 for April, down from 53.8 in March. The Caixin survey focuses on small- and medium-sized enterprises, while the official data tracks larger companies.

While the Caixin services survey's cousin, the manufacturing PMI, tends to be more closely watched, China's pivot toward domestic consumption and away from a manufacturing- and investment-led growth means the service sector, which includes consumer industries such as real estate, retail and leisure, has become the majority of the mainland economy. It is also a key barometer of consumption, accounting for more than 50 percent of gross domestic product (GDP). The continued expansion of the services sector comes after China's policymakers bolstered growth over the past year through a flurry of interest rate cuts and reserve requirement ratio (RRR) reductions for banks, as well as other stimulus efforts. That was reflected in the pace of new order growth quickening to the strongest rate in three months, with 12 percent of respondents recording higher new business compared with less than 3 percent seeing a decline. The positive performance of the services sector has been countered by a continued manufacturing contraction.