China growth slows again

Two surveys on China's manufacturing industry point to slower growth

Manufacturing activity in China slowed in June, according to a pair of leading surveys.

The nation's official purchasing managers' index for June printed at 50.1, a fall from a read of 50.8 in the previous month.

A reading above 50 on the index indicates expansion, while below 50 indicates contraction.

Bloomberg analysts was expecting a slight fall on the previous month to print at 50.1

A second read on manufacturing in China, the HSBC manufacturing PMI, printed at nine-month low of 48.2.

The print follows a read of 49.2 in May and misses Bloomberg analysts' expectations of 49.1.

HSBC chief economist for China, Hongbin Qu said falling orders and rising inventories had added pressure to Chinese manufacturers in June.

"And the recent cash crunch in the interbank market is likely to slow expansion of off-balance sheet lending, further exacerbating funding conditions for SMEs," he said. 

"As Beijing refrains from using stimulus, the ongoing growth slowdown is likely to continue in the coming months."

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