China manufacturing PMI cools in February: survey (by Chris Oliver)

HONG KONG (MarketWatch) -- Momentum in China's manufacturing sector slipped to a seven-month low in February, though activity remains expansionary, according to the preliminary findings of a survey of mainland manufacturers compiled by financial services group Markit and HSBC Holdings. The Flash China Manufacturing Purchasing Managers' Index stood at 51.5, compared to 54.5 in January, HSBC said in a statement on Monday. It released the preliminary PMI ahead of its full-data version due out next week. "Flash PMI data point to a meaningful slowdown in the industrial sector in February. Chinese New Year Holiday may be a factor but not the only reason. It also implies that quantitative tightening is starting to filter through yet more still needs to be done to check inflation," said Hongbin Qu, HSBC's Hong Kong-based chief economist for China. HSBC said its preliminary PMI is based on 85% to 90% of survey responses to the official PMI.