New economic data shows China is going through an economic transformation. Business activity in the country's service sector is expanding, while the manufacturing sector is shrinking.

The Caixin China General Services Purchasing Managers' Index, an indicator of business activity in China's service sector, recently rose to an 11-month high. The index is up from 51.2 in May. It ended at 52.7 this month.

China's logistics prosperity index also rose 1.3 percent. Meanwhile, both Caixin and the official PMI released by the National Bureau of Statistics for the manufacturing sector are down.  The latter dropped 0.1 lower to 50 - a critical point that indicates expansion or contraction in the sector.