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| China manufacturing dips to a nine-month low in August | China manufacturing dips to a nine-month low in August |
| (35 minutes later) | |
| China's manufacturing activity fell to a nine-month low in August, adding to fears that its economy is slowing faster than estimated. | China's manufacturing activity fell to a nine-month low in August, adding to fears that its economy is slowing faster than estimated. |
| The official Purchasing Managers' Index (PMI) fell to 49.2, the lowest reading since November 2011, data released over the weekend showed. | The official Purchasing Managers' Index (PMI) fell to 49.2, the lowest reading since November 2011, data released over the weekend showed. |
| PMI is a key gauge of manufacturing activity and a reading below 50 shows contraction. | PMI is a key gauge of manufacturing activity and a reading below 50 shows contraction. |
| Analysts said China was being hurt by a slowdown in global and domestic demand. | Analysts said China was being hurt by a slowdown in global and domestic demand. |
| "China's manufacturing sector continues to struggle, weighed down by a significant domestic slowdown, a wholly unsupportive external climate and a completely insufficient policy response," Alistair Thornton of IHS Global Insight said in a note after the data was released. | "China's manufacturing sector continues to struggle, weighed down by a significant domestic slowdown, a wholly unsupportive external climate and a completely insufficient policy response," Alistair Thornton of IHS Global Insight said in a note after the data was released. |
| 'Behind the curve' | |
| China's economy saw robust growth in the past few years, boosted in part by record lending by Chinese banks. | |
| However, the credit boom resulted in a surge in property prices leading to fears over asset bubbles and concerns over whether credit-fuelled growth was sustainable in the long run. | |
| That prompted policymakers to introduce various measures to curb lending. | |
| Analysts said that while the moves had helped to keep asset prices in check, they had impacted the country's economic growth. | |
| China's economy grew at an annual rate of 7.6% in the second quarter, the slowest pace of growth in three years. | |
| "The government has underestimated the pace of the slowdown and is behind the curve," said Mr Thornton at IHS Global Insight. |