Chinese non-manufacturing sector growth continues

<p>Chinese non-manufacturing sector expansion has continued.</p>

Growth in China's non-manufacturing sector has continued, albeit at a more subdued pace than before.

This is according to the non-manufacturing purchasing managers' index (PMI) for the world's second-largest economy, which revealed a reading of 55.5 for October, which is an increase compared to September's 53.7 reading.

According to the PMI system, any reading higher than 50 indicates growth and therefore the sector is picking up pace.

Last week, China announced that its manufacturing activity expanded for the first time in three months in October, dampening speculation that the nation's economic slowdown is accelerating.

However, the country's economy expanded at an annual rate of 7.4 per cent between July and September – which is the slowest pace in three years.

The services sector – which includes the construction industry – accounts for nearly 43 per cent of China's gross domestic product.

At close of play in Hong Kong this morning, the Hong Kong Hang Seng was down by 0.4 per cent to an index value of 22006.4 points.

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