News reports have indicated China's manufacturing activity contracted in March at its fastest rate in almost a year, HSBC had said earlier this month, with its purchasing managers index (PMI) suggesting worsening conditions in the country.

The preliminary reading for the key Chinese indicator came in at 49.2, the British bank said in a statement, below the break even point of 50 and the weakest reading since last April, when it hit 48.1, according to the bank's data.

It also slumped from a final reading of 50.7 in February, the figures showed. The index, compiled by information services provider Markit, tracks activity in China's factories and workshops and is regarded as a barometer of the health of the Asian economic giant.

The sluggish reading "signalled a slight deterioration in the health of China's manufacturing sector in March", said Markit economist Annabel Fiddes in the statement.