China's factory activity continues to drop

China’s factory activity hit a nine-month low due to faltering demand, endangering China’s economic growth target of 7.5% and further pressuring policy makers to ease lending, Reuters reported, citing a preliminary survey. The flash HSBC Purchasing Managers’ Index dropped to 48.3 in June from May’s 49.2, reaching further below 50, the level marking the line between expansion and contraction. The survey’s indications add to the pressure on the People’s Bank of China to loosen monetary policy, which started mounting after the recent money squeeze.