HSBC: China manufacturing purchasing managers' index falls to 9-month low

CHINA's industrial production slowdown in July follows a steep nine-month decline into August of export orders to its key trading countries of Europe and the US losing it 1.5 per percentage points, according to the preliminary HSBC manufacturing purchasing managers' index (PMI).

The PMI dropped from 47.8 from 49.3 against the sharpest decline of new export orders since March 2009. Its sub-index on output of Chinese producers also dropped to 44.7 in August from 46.7 the month before. All readings were less than 50 signifies contraction.

"Beijing must step up policy easing to lift infrastructure investment in the coming months," said HSBC chief China economist Hongbin Qu, adding that stabilising growth and the jobs market would be the key to continued growth.