Despite PMI's dip, economic stability seen in manufacturing

China's official purchasing managers index for manufacturing has dropped into contraction territory, while the Caixin PMI survey showed an upturn in operating conditions in this sector.

Analysts said that despite the divergence, the Chinese economy has shown signs of stabilizing.

The official manufacturing PMI, released on Monday by the National Bureau of Statistics and the China Federation of Logistics and Purchasing, fell to 49.9 in July, compared with 50 in June and 50.1 in May.