Weak factory index sounds growth alarm

Views divided over whether steps needed now to stabilize the economy

Growth of China's manufacturing sector slowed to an 11-month low this month, in the latest sign of a steepening slowdown in the economy.

The preliminary reading of the purchasing managers index, a main gauge of factory operating activity, dropped to 47.7 in July, down from 48.2 in June, HSBC said on Wednesday.