A closely watched update on China's manufacturing is incoming

  • Caixin, IHS Markit will release China March manufacturing PMI reading at 9:45 a.m. HK/SIN on Monday.
  • That metric focuses on smaller businesses in China compared to the official PMI reading, which was released on Saturday.
A textile worker at a factory in Nantong city, located in the Jiangsu province, China.
VCG | Getty Images
A textile worker at a factory in Nantong city, located in the Jiangsu province, China.

A survey focused on small and mid-size manufacturing in China is expected to show some pick-up in factory activity in March after long Lunar New Year holidays the month before.

Economists polled by Reuters expected the private Caixin/Markit PMI to edge slightly higher to 51.7 in March versus 51.6 in February.

A reading above 50 indicates expansion, while a reading below that signals contraction.

The Caixin/Markit survey focuses on small and mid-size businesses in China and comes after the world's second-largest economy reported official March manufacturing PMI on Saturday that surpassed expectations.

The official Purchasing Managers' Index (PMI) released on Saturday rose to 51.5 in March, from 50.3 in February, and was well above the 50-point mark that separates growth from contraction on a monthly basis.

A corresponding private release of China services PMI for March is set to be released on Wednesday.