Factory index drops to lowest in 2 years

China's official manufacturing purchasing managers' index came in at just above 50 in October, the lowest level in more than two years, according to the National Bureau of Statistics on Wednesday.

Analysts attributed the low PMI to slower economic expansion and the escalating US-China trade disputes and said if the situation continued to worsen, the authorities may ramp up stimulus measures to keep the economy on track.

The PMI reading, which measures factory conditions and business expectations in the world's second-largest economy, fell to 50.2 in October, the lowest since July 2016 and down from 50.8 in September. It is also significantly weaker than the average for the January-September period, which is 51.2.