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The Caixin/Markit Services Purchasing Managers' Index (PMI) for China increased to 53.8 in July from 51.8 in June. It was the highest level since August 2014.
A reading above 50 indicates expansion in the sector.
The new business sub-index rose to 54.0 in July from 54.2 in June, while the employment sub-index also increased. Input prices and selling prices climbed in July.
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