Growth in China's services sector accelerated to a 16-month high in November. The Caixin services PMI increased to 53.1 in November, up from 52.4 in October.

Caixin's composite PMI was 52.9 in November. That was unchanged from October and also pointed to solid growth.

The upbeat findings echo an official survey last week that showed service growth picked up to 53.7, a level unseen since 2014. Service companies added staff at the fastest pace in a year-and-a-half but an increase in new orders dipped slightly.

Analysts warn higher wages continue to put pressure on companies and a boost from prices without an increase in sales would only lead to slimmer profit margins.

Caixin forecasts that the economy would continue to expand in the fourth quarter but downward pressure will persist until next year.