Caixin PMI points to improving prospects

The Caixin China general manufacturing purchasing managers' index remained unchanged from the previous month at 50.2 in May, which analysts said signals a further marginal improvement in the health of China's manufacturing sector.

The headline PMI - a composite indicator providing a snapshot of operating conditions in the manufacturing economy - has now posted above 50, which divides expansion from contraction, in each of the past three months, said a report issued on Monday by Caixin Insight Group and IHS Markit.

The Caixin manufacturing PMI, which surveys more small and medium-sized enterprises and export-oriented firms located in eastern coastal regions, was inconsistent with the official manufacturing PMI, which fell to 49.4 in May from 50.1 in April.