Caixin PMI: China’s November factory growth hits five-month high, beats forecasts

China's manufacturing activity continued to expand among smaller manufacturers in November, signaling that the country's recent stimulus efforts have already helped to lift certain sectors of its ailing economy, according to a private survey released Monday.

The Caixin/S&P Global manufacturing purchasing manager's index came in at 51.5, beating the median estimate of 50.5 in a Reuters poll. This also marks the second month in a row that the official reading has stayed above the key 50 level, which separates growth from contraction. 

"Central to the latest advancement in manufacturing sector conditions was greater new business inflows," said Caixin Insight Group's senior economist Wang Zhe.

Chinese manufacturers saw incoming new orders rise at the fastest pace in more than three years, the private survey noted. "A renewed rise in export orders also supported the rise in overall new orders," Wang said.

This private gauge comes after the official PMI data, released Saturday, also indicated that manufacturing activity in the country expanded to 50.3 in November from 50.1 in the previous month. The reading beat Reuters' expectations of 50.2.

The Caixin survey tends to feature more small- and medium-sized firms as well as private sector companies, compared to the official PMI survey which typically polls large and state-owned firms.

"The uptick is an early sign of stabilization in China's manufacturing sector supported by the hope of stimulus," said Gary Ng, senior economist at Natixis. However, Ng highlighted that it is still important to assess the improvement in real estate and size of fiscal spending in the coming months.

"Better consumer and business sentiment will be needed to bring a more persisting rebound," Ng told CNBC.