The HSBC/Markit Services Purchasing Managers' Index (PMI) in China rose to 52.0 in February, up from January's service PMI of 51.8 and slightly above the 50-pt. mark that demarcates a monthly activity contraction from growth.

This data comes on the heels of the People's Bank of China loosening policy rates to spur growth earlier this week.

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The service PMI climbed as a result of new orders coming, growing at its fastest pace in three months.

A sub index for new orders similarly picked up to 52.2 last month from 51.2 in January. The sub index for new businesses also gained.

"The solid rise in new orders suggests that activity growth may pick up in the months ahead, as firms continued to add to their payroll numbers amid a positive business outlook," said Annabel Fiddes, Economist at Markit.

Meanwhile, official surveys showed that services expanded to 53.9, owing to robust spending during the Chinese Lunar New Year holiday.

Asia's largest economy, and the world's second biggest, valued last year at $10.2 trillion, sees a strong service sector, having withstood the nationwide slump, faring better than the manufacturing sector that relies heavily on foreign demand.

China's economy moved sluggishly in 2014, growing at 7.4%, its slowest pace in over two decades, close to half its best rate eight years ago.

Analysts even see the expansion dwindling further, to as low as 7%, despite the administration and central bank's stimulus campaigns given the easing property sector, excess manufacturing capacity and listless investment.

The PBOC's policy adjustment this week is the third since November when it cut interest rates and slashed the reserve requirement ratio (RRR). Economists anticipate more policy easing in the quarters to follow.

China will announce its growth target for the year at the annual session of China's legislature this week.

TagsHSBC, Market Services, purchasing managers' index, PMI