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Will Chinese data this week continue to impress?

Tomohiro Ohsumi | Bloomberg | Getty Images

As investors prepare for a deluge of data out of China this week, analysts told CNBC better-than-expected numbers could entrench the positive mood created by the double dose of Purchasing Managers' Index (PMI) data in the past week.

China's non-manufacturing PMI at the weekend showed growth in the country's services sector continued to stay buoyant, and follows equally robust manufacturing PMI last week. Both have helped ease concerns for China's economy, where a slowdown in recent months has triggered fears of a hard landing scenario.

(Read More: US blames China for breakdown in trade talks)

Now analysts are looking to this week's data as a gauge of whether the upbeat momentum can continue. The flurry of data will span from trade figures out on Thursday, together with the latest inflation, industrial output, fixed asset investment and retail sales data scheduled for Friday.

"Markets will focus on industrial production and trade this week, with a particular focus on exports. Expectations are subdued, which means it will not be difficult to exceed them," said Dariusz Kowalczyk, senior economist and strategist at Credit Agricole.

China saw some particularly dismal trade numbers in June. Exports fell 3.1 percent year on year, marking the first decline since January 2012. Meanwhile imports contracted 0.7 percent, vastly underperforming expectations of an 8 percent rise. China's industrial production levels also slowed in June, they grew at a rate of 8.9 percent, down from 9.2 percent in May.

"Exports will turn back positive after a contraction in June, while industrial production will also improve a little to 9 percent," said Kowalczyk.

(Read More: Why China Delivered Such a Big Miss in Trade Data)

Meanwhile, Shuang Ding, senior China economist at Citi Investment research and analysis, agreed that the focus will be on the trade and industrial production figures, both of which should show a steadying economy. Ding forecasts a 1 percent rise in exports, a 1.5 percent rise in imports and a 9 percent rise in industrial production.

"I think the pace of deceleration [in terms of Chinese growth] seems to have stabilized - we do not expect a sharp slowdown," said Ding.

According to Credit Agricole's Kowalczyk, a positive uptick in data this week strengthen China bulls' case that fears over a sharp slowdown are overblown, amidst bearish forecasts from economists that growth in China could fall below 7 percent this year.

(Read More: Now, China Watchers See Growth Below 7%)

"It will not be strong but it will be better. I think the trade data will reassure markets that the slowdown that China saw in the first half of the year has come to an end. The mood for China will improve and people will gradually stop worrying about it," he added.

However, other economists were less optimistic.

(Read More: China PMI could mark end of negative data surprises)

Raymond Yeung, senior economist at ANZ, told CNBC that the recent PMI data, which measures sentiment, is not a good gauge of the China's economy compared to the "hard" data that will hit markets this week.

He believes the data this week will reveal the true state of China's economic growth, which he says remains in decline.

"We expect that all these real activity data to remain on a downtrend," said Yeung.

—By CNBC's Katie Holliday: Follow her on Twitter @ hollidaykatie

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