Survey: Factory activity shrinks

China's factory activity contracted in May for the first time in eight months, a private survey showed, pointing to pressures from the United States' volatile tariff policy and shoring up the case for strong macro policy support to boost demand.

The Caixin China General Manufacturing Purchasing Managers' Index, an indicator of the operating conditions of the sector, dipped to 48.3 in May from 50.4 in April, below the 50-point mark that separates expansion from contraction, media group Caixin said in a report. The figure also hit its lowest level since September 2022.

Compared to the official gauge, the Caixin manufacturing PMI tracks small, export-oriented companies more closely.