China's factory activity dropped in March. The preliminary HSBC Purchasing Managers' Index (PMI) declined to 49.2 in March from a final reading of 50.7 in February. It was the lowest level since April 2014. The decline was driven by lower new orders.

Analysts had expected the index to decline to 50.5.

A reading below 50 indicates a contraction of the activity.

These figures could mean that the government might implement further stimulus measures.