A red-hot April for China's services sector

Beijing

CHINA'S services sector grew at its fastest pace this year in April as a sizzling stock market rally helped boost consumer confidence and spending, a private survey showed on Wednesday. Yet in a sign that China's economy still faces strong headwinds, the HSBC/Markit China Services Purchasing Managers' Index (PMI) showed final prices of services hit a 15-month low in April as some firms were forced to cut prices to lift sales.

The services PMI rose to a four-month high of 52.9 in April from 52.3 in March, comfortably above the 50-point level that separates expansion from a contraction in activity on a monthly basis.