HSBC China flash Purchasing Managers' Index fell slightly to 50.4 from a 7-month high of 50.9 in October. It still stay above the key-mark that seperates expansion from contraction.
Experts believed that PMI slips due to the weakening effect of stimulus measures to economy early this year.
"We have seen some recovery in the last 3-6 months because of the mini stimulus earlier this year and that impact is fading," Kevin Lai, senior economist for China and Hong Kong at Daiwa Capital Markets.
In July, the government unveiled initiatives to support growth including cutting taxes for some small and micro-sized enterprises and measures to stabilize exports and speed up railway investment to bolster economic growth.
"We have yet to see a full recovery from exports so going forward, if we don't see another round of stimulus or policy support then growth will moderate a little bit. But it's not a huge issue. Next year, if we see some credit issues, that would really undermine growth," he added.
Written by Nicolas Yang
