Summary：**China's Services Sector Bounces Back, Powered by Tech and Insurance Boom** *Beijing, November 3,

**China's Services Sector Bounces Back, Powered by Tech and Insurance Boom**

*Beijing, November 3, 2025* – China’s services sector posted its first quarter‑over‑quarter expansion in six months, driven by a surge in high‑technology services and a robust rebound in insurance activity, according to the latest data from the National Bureau of Statistics. The services PMI rose to 52.3 in October, up from 49.8 in September, signaling a shift from contraction to modest growth.

**Key Developments**
The rebound was anchored by two standout performers. First, information‑technology and software services grew 8.4% year‑on‑year, reflecting increased demand for cloud computing, AI‑driven analytics, and digital transformation projects across manufacturing and finance. Second, the insurance sub‑sector posted a 12.1% rise in premium income, buoyed by renewed consumer confidence, policy incentives for health and pension coverage, and a wave of new product launches targeting middle‑class households. Retail and hospitality, while still lagging pre‑pandemic levels, showed modest improvements, contributing an additional 0.6 percentage point to overall services growth.

**Industry Analysis**
Analysts attribute the tech‑led uplift to sustained government support for “new infrastructure” initiatives, including 5G rollout and data‑center expansion, which have lowered barriers for enterprises to adopt advanced digital tools. The insurance boom, meanwhile, reflects both macro‑economic stabilization and regulatory reforms that have encouraged product innovation and expanded distribution channels, particularly through online platforms.

Sector‑specific PMI components reveal that new orders and employment indices both crossed the 50‑point threshold, indicating that firms are not only seeing higher demand but are also hiring to meet it. However, analysts caution that the recovery remains uneven: high‑value services are outpacing traditional segments such as travel and entertainment, which continue to face headwinds from lingering travel restrictions and shifting consumer preferences.

**Future Outlook**
Looking ahead, economists forecast that the services sector could maintain a PMI range of 51–5