China factory activity slows further

China's manufacturing activity weakened further in June, falling to a nine-month low as demand fell, according to a preliminary survey by HSBC.

The bank's Purchasing Managers' Index (PMI) declined to 48.3, from May's reading of 49.2. A reading below 50 indicates a contraction.

The weak data comes amid fresh concerns over the health of Chinese economy, the world's second-largest.

Last week, the World Bank lowered its 2013 growth forecast for China.

The bank now expects the China to grow 7.7% this year, down from its earlier projection of 8.4%.

Among the concerns cited by analysts have been fears that a protracted slowdown in key markets such as the US and Europe may hurt demand for Chinese exports and impact its manufacturing sector.

Qu Hongbin, chief China economist at HSBC. said the sector was being "weighed down by deteriorating external demand" as well as "moderating domestic demand".