China service sector gains in August

In August, growth in China's services sector gained, as new orders expanded moderately and employment stabilized, while business expectations surged to a six-month peak, a private poll disclosed on Monday.

More indications of stability in the Chinese economy back the surging consensus that China's major financial institution will hold off on further monetary easing, including interest rate cuts through at least the end of 2016.

Stronger activity in the services sector, along with a struggling manufacturing industry, also paint a picture of the Chinese economy rebalancing slowly.

However, financial experts stress that revenues in services can be explained by a housing recovery boosting real estate as well as construction services, though might not be sustainable.

Meanwhile, in August, the Caixin/Markit services purchasing managers' index edged up on a seasonally adjusted basis to 52.1, from 51.7 in July.

However, the overall rate of expansion appeared to be in line with recent months and also remained quite below the historical average.

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