Manufacturing activity slipped further in China, with the Caixin purchasing managers' index hitting a new post-crisis low in the flash reading for this month. New export orders again appear to have been the biggest contributor to the decline, which in turn weighed on output. The extra holiday during the month might also have had some impact, HSBC analysts said in the latest report. "[Wednesday's] data points to headwinds to growth as a result of weak global demand," they said. "Growth will therefore need to be more domestically driven." There have been some signs of recovery in the property market and better access to funding for infrastructure projects in recent months. More monetary and fiscal policy measures are also on the cards. The bank forecast a further cut of 150 basis points in the reserves ratio in the coming months to stoke economic growth.
