"China's factory activity shrank for a third straight month in July to its lowest level in nearly a year as new orders fell, a private survey showed on Thursday, signaling the persistent pressure on the economy has extended into the third quarter.
The HSBC Purchasing Managers' Index (PMI), compiled by Markit Economics Research, fell to 47.7 in July from June's 48.2. It was the weakest reading since August 2012, and matched a preliminary figure published last week.an this positive news? "
China official PMI rises to 50.3 in July
Published: Wednesday, 31 Jul 2013 | 10:15 PM ET
By: Li Anne Wong | Senior Digital Editor, CNBC Asia
China's manufacturing sector managed to stay in expansionary phase in July, according to official government data on Thursday, defying forecasts of a contraction.
Official manufacturing Purchasing Managers' Index (PMI) rose to 50.3 in the month from 50.1 in June, and better than a Reuters consensus estimate of 49.9. The key 50 threshold demarcates expansion from contraction.
The data drew swift reaction from markets. The Australian dollar, whose recent weakness has been attributed to the slowing growth in China, rose a quarter of a percent to trade at $0.8964.
China's Shanghai Composite rose 1.4 percent to a one-week high, while Hong Kong's Hang Seng rose 1 percent to a two-month high.