Signs of weakness in China's economy have cast a shadow over a stock market that was just enjoying a run of strength.
The benchmark Shanghai Composite Index fell from a two-month peak on Thursday after the HSBC China flash purchasing managers' index (PMI), a gauge of manufacturing activity, fell to seven-month low.
It extended those falls on Friday, declining almost 1.5 percent to 2,106.
(Read more: China factory activity slows to a 7-month low)
"We need to be careful about extrapolating from the PMI data to earnings; what will be more important is the upcoming earnings season," Sam Le Cornu, senior portfolio manager, Asia Listed Equities at Macquarie Funds Group, told CNBC Asia's "Squawk Box."
"What we're trying to do is put companies under a magnifying glass and really focus on the corporate earnings. I still expect fairly solid corporate earnings from China companies," he added.
China's stock market started 2014 on a weak note but easing worries about tight liquidity conditions and some signs of strength in the economy have helped the Shanghai Composite recover some ground. Even after two days of selling, the Shanghai Composite is up more than 6 percent from six-month lows hit it January.
(Read more: Can China protect its prized 7% growth level)