An official factory survey on Sunday showed manufacturing on the mainland contracting for a second month in June. But the non-manufacturing sector - which includes services and construction - continued to grow, albeit at a slower pace.

The official purchasing managers' index, or PMI, is a broad survey of sentiment among factory owners. It came in at 49.5 for June and, although the figure was unchanged from May, a number below the 50-mark separates growth from contraction.

Meanwhile, the non-manufacturing PMI fell to 50.5 from 51.1 in May. The figure, which is the lowest since December, suggests consumers are still cautious, even as the sector grows.

Analysts now expect Beijing to roll out more policy support measures in the short term, while a government pledge to boost fiscal stimulus is seen helping kick domestic consumption into a higher gear.