China manufacturing gauge hits 11-month low: HSBC

LOS ANGELES (MarketWatch)
China's manufacturing-sector activity is slowing further in July, with new factory orders deteriorating at a faster pace, according to preliminary data out Wednesday from HSBC and Markit
The so-called "flash" version of HSBC's Chinese manufacturing Purchasing Managers' Index dropped to 47.7, an 11-month low and down from a final result of 48.2 for June, with any reading below 50 indicating contraction
A separate government version of the June PMI printed at 50.1
The flash PMI -- which includes about 85%-90% of the survey responses that will be used for the final version -- also showed new export orders slowing, albeit at a slower rate than in the previous month
HSBC chief China economist Hongbin Qu said that the preliminary result "adds more pressure on the labor market," adding that with Chinese leaders saying they would secure a stable employment rate, "the flash PMI reinforces the need to introduce additional fine-tuning measures to stabilize growth."