The Chinese Markit/Caixin manufacturing PMI fell to 49.2 in May from 49.4 in April. The decrease was driven by declines in output and new orders. Employment continued to decline.

"Overall, China's economy has not been able to sustain the recovery it had in the first quarter and is in the process of bottoming out," Dr. Zhengsheng Zhong, Director of Macroeconomic Analysis at CEBM Group, said.

"The government still needs to make full use of proactive fiscal policy measures accompanied by a prudent monetary policy to prevent the economy from slowing further," he added.