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Analysts said the survey results show that the Chinese economy remains on track, although policymakers should closely monitor the adverse effect of credit contraction on small enterprises. The Caixin/Markit Services Purchasing Managers' Index (PMI) stood at 52.9 in May, unchanged from April. The composite index, which combines both manufacturing and services PMI, was 52.3 last month, also unchanged from April. A reading above 50 indicates growth.

Analysts expect the bank to further ease policy to help cope with slowing growth and offset the effects of a crackdown on shadow banking. However, while non-bank shadow institutions are being squeezed for money, the Beige Book reports that companies are still borrowing heavily, and interest rates have fallen, which should lower repayment costs.

Andy Wang, the CEO of StarTimes Kenya, delivers a speech during the hand over ceremony. [Photo by Liu Hongjie/chinadaily.com.cn]

Analyzing the data, the 21st Century Economic Research Institute concluded that the impact of the COVID-19 epidemic on the economic development of western China gradually eased.

Analysts said US President Donald Trump's tariffs on 0 billion worth of Chinese products could double the damage to Canada overall, including its imports and exports.