China's official Purchasing Managers' Index for the manufacturing sector hit its highest level in more than two years, higher than expectations and sending a signal of the country's economic recovery.

According to the National Bureau of Statistics, the PMI in October registered 51.2, the best performance since July 2014 and remarkably higher than 50.4 in September and August, and 49.8 a year ago.

The index, which mainly monitors the activity of large and medium-sized enterprises, is a leading gauge of the performance of the manufacturing sector. A reading above 50 indicates expansion in the sector, while below 50 means contraction.