China's factory activity expanded at the fastest pace in more than three years in November on the good news didn't end there.

Growth in the services sector also hit a multiyear high, expanding for the ninth straight month, recent production data has shown manufacturing is now at pre pandemic levels.

China's official manufacturing PM I rose to 52.1 in November.

That's the highest reading since September 2017 on remains above the 50 point mark that separates growth from contraction.

The official, P M.

I, which largely focuses on big and state owned firms, showed strong new orders.

That bodes well for the export sector, which has benefited from strong foreign demand for medical supplies and electronic products.

Consumer demand has also bolstered confidence for small and medium sized firms, but some analysts say risks remain a surging yuan and further lockdowns in many of its key trading partners could pressure Chinese exports.