China's manufacturing activities are likely to contract for a second consecutive month in February, reaching their lowest point since July, British bank HSBC Holdings Plc said on Thursday.

The manufacturing Purchasing Managers' Index is forecast to drop to a seven-month low of 48.3 from 49.5 in January and 50.5 in December, due to slumps in each sub-index, including output, new orders and employment, HSBC said.

The flash reading of the HSBC manufacturing PMI in February may have reflected renewed destocking activities as new orders and production contracted, said Qu Hongbin, chief economist in China and co-head of Asian Economic Research at the bank.