China's HSBC flash manufacturing purchasing manager's index rose to a four-month high in August as the country's manufacturing growth starts to stabilise.
The HSBC flash manufacturing PMI rose to 50.1 in the month, from 47.7 in July.
The result is higher than forecast, as Bloomberg analysts had expected a rise to 48.2.
HSBC chief economist for China and co-head of Asian economic research Hongbin Qu said China's manufacturing growth was stabilising on the back of modest improvements of new business and output.
"This is mainly driven by the initial filtering through of recent fine-tuning measures and companies’ restocking activities, despite the continuous external weakness," he said.
"We expect further filtering-through, which is likely to deliver some upside surprises to China's growth in the coming months.”