PMI points to weaker service conditions

Wang Tao, chief economist in China at UBS AG, characterized the current economic situation as "a seemingly soft start" for 2014.

"We anticipate the January data to show that economic momentum may have softened slightly, due in part to Chinese New Year distortions," she said.

Wang said China's relatively warm winter likely helped keep food prices and consumer inflation subdued and power use weaker in January.

Zhu Haibin, chief economist in China at JPMorgan Chase & Co, said: "In the near term, the volatility in the financial market adds to the concern about economic slowing.

"The first thing to watch for whether the upward drift in interbank rates and higher volatility will be passed through to ultimate borrowers in the business sector."

He mentioned other factors that will constrain growth momentum in the coming months, including lingering manufacturing overcapacity, tighter local government financing conditions and a slowing in the housing market.

However, the chief China economist at the Royal Bank of Scotland, Louis Kuijs, said there is no need to become "overly concerned" about growth in China.

"The government has the policy space it needs to ensure its bottom line on growth while retaining financial stability.

"We will also pay attention to how policymakers balance the need to rein in credit growth and the excesses in shadow banking with the desire to keep GDP growth above the bottom line of about 7 percent," Kuijs said.