Seems to be some credence to the notion that China is working to expand its service sector vs manufacturing and construction:
June 4 (Bloomberg) — China’s services industry expanded at a faster pace in May, according to a survey of purchasing managers released by HSBC Holdings Plc and Markit Economics.
The PMI rose to a 19-month high of 54.7 in May from 54.1 in April, HSBC and Markit said today. The result contradicted a government-backed survey of services businesses released June 3 and signs from other data that a slowdown in the world’s second- biggest economy is deepening.
China’s stocks rebounded today from the biggest drop in six months on speculation the government will accelerate measures to spur consumer spending. The Ministry of Finance said yesterday it will offer consumers subsidies for purchases of energy-saving home appliances including washing machines, water heaters and refrigerators.
“This should reduce the fears of a sharp growth slowdown,” Qu Hongbin, a Hong Kong-based economist for HSBC, said of the PMI reading.
The Shanghai Composite Index rose 0.4 percent as of 10:47 a.m. local time after sliding 2.7 percent yesterday.