Asia Economy

China official PMI steady at 51.1 in September

Group of workers at a small parts manufacturing factory in China.
Mick Ryan | Getty Images

China's manufacturing activity remained steady in September, data showed Wednesday, a sign that economic growth is stabilizing.

The official Purchasing Managers' Index (PMI) came in at 51.1, unchanged from August and a tad higher than Reuters' expectations or 51.0. The reading also remained above the 50-mark which separates expansion from contraction.

Markets showed limited reaction to the news, with both Shanghai and Hong Kong closed for a public holiday. The Australian dollar also shrugged off the data.

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The data follows the HSBC final PMI, released Tuesday, which was unchanged from the month before at 50.2.

The world's second-largest economy has shown signs of sluggishness in recent months, especially in credit inflows and its key property sector. Beijing has responded with a drip feed of measures to support the economy.

On Tuesday, the People's Bank of China and China Banking Regulatory Commission announced measures to support housing sales and increase lending to cash-strapped property developers.

China September official PMI holds steady - will it last?

The new set of measures include granting second-time home buyers – that have already paid off their previous mortgage– access to both lower mortgage rates and down-payment requirements.Second-home buyers can now get a 30 percent discount on their mortgage rates, an offer previously limited only to first-home buyers.

Read MoreDown payment levels were also cut to 30 percent from 60-70 percent. In addition, banks were asked to support the funding needs of "quality" developers, increase their access to the bond market and introduce pilot programs for REITs.

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"Chinese authorities are reacting to that with the property easing measures announced, reversing the types of policies we've seen," said Steve Brice, Chief Investment Strategist at Standard Chartered Wealth Management Group.

"If you look at the consensus growth forecast for 2015, it's starting to notch down at 7 percent. We also started to see people getting concerned about China's economic outlook and that adds to the uncertainty at the moment," he added