China's factory activity expanded more than had been predicted in November, as the Caixin/Markit manufacturing purchasing managers' index (PMI) rose to its highest level in almost three years. Experts believe that the trend reflects upgrades in the economy and increasing order numbers.

The Caixin manufacturing PMI hit 51.8 in November, up from 51.7 in October, and exceeding the expected 51.4. November marks its highest level since 2017, after four consecutive months of increases. 

A reading above 50 indicates expansion, while a number below 50 points falls into the contraction range.

Zhong Zhengsheng, director of macroeconomic analysis at the CEBM Group, said that both rising overseas and domestic demands are behind November's heightened PMI, according to a report by caixin.com. 

The increasing PMI shows that the effects of a new economic driving force have been kicking in, Cong Yi, a professor at the Tianjin University of Finance and Economics, told the Global Times on Monday.

Though China is still in a tough phase of industrial upgrading, its new industries are growing with great momentum, and will set an example of innovative development for other industrial sectors, Cong said, noting that November's PMI is a positive indicator for anticipated investment from both domestic and overseas sources.

The rising Caixin PMI is in line with the earlier PMI released by NBS on Saturday, both indicating the production of China's manufacturing industries have been improving, Liu Xuezhi, a senior economist at the Bank of Communications, told the Global Times.

Domestic demand has been strengthening in the third quarter, Liu said, adding that the performance of export-oriented manufacturing has resumed to some extent thanks to the positive signals of China-US trade talks.

The PMI in the following months is expected to keep in the expanding area, though it may not surge forward given that the downward pressure on the world economy still persists, Liu forecasted.