�The HSBC Flash China Manufacturing Purchasing Managers’ Index (PMI) collecting from February 12 to 18, 2014, is at 48.3 in February (49.5 in January), a seven-month low. Flash China Manufacturing Output Index, meanwhile, is at 49.2 in February (50.8 in January), also seven-month low.

Hongbin Qu, Chief Economist, China & Co - Head of Asian Economic Research at HSBC comments that February’s flash reading of the HSBC China Manufacturing PMI moderated further as new orders and production contracted, reflecting the renewed destocking activities. The building-up of disinflationary pressures implies that the underlying momentum for manufacturing growth could be weakening. He believes Beijing policy makers should and can fine-tune policy to keep growth at a steady pace in the coming year.

The index is published on a monthly basis ahead of final PMI data, making the HSBC PMI the earliest available indicator of manufacturing sector operating conditions in China. The estimate is typically based on approximately 85%–90% of total PMI survey responses each month and is designed to provide an accurate indication of the final PMI data.

February final PMI data will be released on 3 March 2014.