The Chinese Markit/Caixin manufacturing PMI declined to 48.0 in February from 48.4 in January. The decrease was driven by a drop in output and new orders.

"The index readings for all key categories including output, new orders and employment signalled that conditions worsened, in line with signs that the economy's road to stability remains bumpy," Dr. He Fan, Chief Economist at Caixin Insight Group, said.

"The government needs to press ahead with reforms, while adopting moderate stimulus policies and strengthening support of the economy in other ways to prevent it from falling off a cliff," he added.