News of a pick-up in China's factory activity suggests the world's second-largest economy is regaining its momentum, analysts told CNBC.
Factory activity expanded at the fastest pace in five months in May thanks to rising new orders, official data showed on Sunday. The official Purchasing Managers' Index rose to 50.8 in May, from April's 50.4, beating market expectations of 50.6.
The upbeat data comes after policy makers announced plans to further ease monetary policy on Friday by cutting reserve requirements for banks that lend to the agricultural sector and small enterprises. They undertook a similar move last month for banks in rural areas.
Martin Lakos, division director, Macquarie Private Wealth told CNBC Asia's "Rundown" on Monday that China seems to have reached a turning point.
"We're still of the view that... in the third or fourth quarter we might see quarterly growth of 7.7 percent, which would average the year at 7.4 to 7.5 percent, which is what the authorities want," said Lakos.