Early PMI estimate shows China's factory activity contracting in May

The China HSBC/Markit Purchasing Managers’ Index fell for the third month in May, this time by 0.7 to 49.1, 0.8 points below the line delineating growth of activity in the country’s factory sector from contraction, Reuters reported. “The subdued flash PMI print suggests there is no clear sign of near-term stabilisation in the economy. Risks to the outlook remain to the downside,” Barclays economist Shengzu Wang wrote in a research note. The survey showed China’s factories are still struggling with sluggish demand at home and abroad.