HSBC China's preliminary manufacturing PMI sinks

China's manufacturing activity contracted for the third month in a row in March, hitting an eight-month low, according to HSBC's preliminary purchasing managers' index (PMI) released on Monday.

The HSBC/Markit China flash manufacturing PMI for March dipped to 48.1 from a final reading of 48.5 in February, said data company Markit in a statement.

PMI above 50 indicates expansion and below 50, contraction.

January saw HSBC China manufacturing PMI dipping to 49.5 from 50.5 in December, the first deterioration of operating conditions in China's manufacturing sector since July 2013.

Commenting on the figure, HSBC's chief China economist Qu Hongbin said March's flash reading suggested China's growth momentum continued to slow down, and weakness was broadly-based with domestic demand softening further.

"We expect Beijing's policy will stabilize growth. Likely options include lowering entry barriers for private investment; targeted spending on subways, air cleaning and public housing; and guiding lending rates lower," Qu said.