Business in Hong Kong remains mostly flat

But October PMI rose to a seven-month high of 50.1.

The HSBC Hong Kong manufacturing Purchasing Managers Index rose to 50.1 in October from 50.0 in September but indicated little change in business conditions in Hong Kong.

HSBC Holdings PLC said orders from China remain weak. A reading below 50 indicates a contraction in the sector while a reading above 50 indicates an expansion.

October's PMI was the highest reading since March's 50.5. Although output increased marginally in October, the volume of new business received by companies was the same as in September.

HSBC said that despite rising to a seven-month high, Hong Kong's overall business conditions was mostly flat in the month as the major subindices moderated from September with overall business from China still remaining weak.

It noted that the modest uptick in the headline starts the fourth quarter on a high, indicating a steady pace of growth in the current quarter as well.

The HSBC PMI is calculated using indexes measuring change in output, new orders, employment, suppliers' delivery times and stocks. It is based on a survey of about 300 companies prepared by Markit Economics.