The economic trend, as indicated by the falling manufacturing activity indices in April, is exerting pressure on the ongoing economic structural reforms and will test reform-oriented policymakers.

The final HSBC Purchasing Managers' Index for China dropped to 50.4 in April from March's 51.6, which, together with the official figure, increases concerns about the weakening of the world's second-largest economy.

Both the official data for April and HSBC calculations show across-the-board weakening. The new orders sub-index, for example, fell to 51.7 from 52.3 in March, indicating the global headwinds Chinese exports are struggling against. These will continue to be a drag on the Chinese economy for the rest of the year given the weak job creation and final PMI data for the United States and Europe.