SHANGHAI: Manufacturing activity in China held steady in April, according to an independent reading Friday by HSBC, which suggested Beijing was likely to press on with a monetary tightening policy.
The HSBC China purchasing managers index (PMI) was 51.8, unchanged from March, the British banking giant said in a statement.
A reading above 50 indicates the sector is expanding while a reading below 50 indicates contraction.
"The final results from April's manufacturing PMI survey confirmed the picture of steady growth across the manufacturing sector," HSBC's chief China economist Hongbin Qu said in a statement accompanying the index's release.
"This, plus stronger-than-expected March growth and inflation data, calls for a continuation of Beijing's tightening efforts in the coming months."
The data was published ahead of the country's official PMI, which the China Federation of Logistics and Purchasing (CFLP) was expected to release on May 1.
Responses by executives to HSBC's monthly survey indicated firms were hiring at their fastest rate since December, despite only slight growth in new business and a slower expansion of their production, the bank said.
Inflation remained stubbornly high in March, with the consumer price index rising 5.4 percent year-on-year -- the fastest pace since July 2008 and well above the government's 2011 target of four percent.
Prices have remained high despite four interest rate hikes since October and numerous increases in the bank reserve requirement ratio, which effectively limits the amount of money banks can lend.
The soaring price of food and housing have become top public concerns, prompting Premier Wen Jiabao to pledge new efforts to contain the problem in his address to China's rubber-stamp parliament last month.
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