AS per HSBC latest PMI for the month of February, growth in China's manufacturing sector is down from two-year highs. Flash PMI is the earliest indicator of China's economic health showing manufacturing sector at 50.4 slipping in February from January ‘s reading 52.3, thus indicating that China is enjoying the gentle recovery but has long way to go as the global situation has not yet stabilized and lot more has to be unveiled in months ahead this year for China.

However, the underlying strength of the Chinese growth recovery remains intact, as indicated by still expanding employment and the recent pick-up of credit growth. The new orders sub-index remained comfortably above 50 even after falling from January. The rebound, though gentle, would comfort investors banking on a modest Chinese economic recovery to lift global growth.