HSBC China Flash PMI fell to a nine-month low of 48.3 in June.

This was below expectations for a marginal decline to 49.1, from 49.2 in May.

A reading below 50 indicates contraction.

China’s official PMI report unexpectedly climbed to 50.8 in May.

One of the key differences between the two reports are the survey size. The National Bureau of Statistics PMI survey looks at responses of 3,000 companies in 21 industries. This compares with about 430 companies surveyed by HSBC.

We will be watching the direction of the inventories of finished good sub-index too, as concerns mount over China’s excess capacity problem.