HSBC's final reading for September Chinese manufacturing PMI has come in at 50.2, sharply below the flash print of 51.2 but slightly above 50.1 in August.
New orders remained flat on month and external demand improved, HSBC says, while manufacturers continued to restock, albeit slowly.
There are still a lot of structural headwinds ahead, says HSBC's Frederic Neumann. "This is as good as it gets for the time being. It reflects the stimulus over the summer but don't expect too sharp an acceleration from here.
Nomura's Zhiwei Zhan believes that the marginal improvement in August indicates that China's economic recovery is unsustainable, and he expects growth to peak in Q3 and then resume slowing.
Chinese shares +0.6%. (PR)