Flash China Manufacturing Purchasing Managers’ Index (PMI) is at 48.1 in March, the eight-month low compared with 48.5 in February. Meanwhile, Flash China Manufacturing Output Index is at 47.3 in March, also the eight-month low compared with 48.8 in February, according to Hong Kong Shanghai Bank (HSBC).

Commenting on the Flash China Manufacturing PMI survey, Hongbin Qu, Chief Economist, China & Co - Head of Asian Economic Research at HSBC, says that the HSBC Flash China Manufacturing PMI reading for March suggests that China’s growth momentum continued to slow down. Weakness is broadly-based with domestic demand softening further.

They expect Beijing to launch a series of policy measures to stabilize growth, likely options include lowering entry barriers for private investment, targeted spending on subways, air-cleaning and public housing, and guiding lending rates lower, says HSBC.

The HSBC Flash China Manufacturing PMI 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% to 90% of total PMI survey responses each month and is designed to provide an accurate indication of the final PMI data. The latest data is collected from March 12 to 20, 2014. March final PMI data will be released on April 1, 2014.