Chinese manufacturing sector suffered the worst contraction in August since March 2009, a private survey carried out by HSBC Holdings Plc revealed.

The HSBC purchasing managers' index (PMI) slipped to a seasonally adjusted 47.6, as compared with 49.3 in July. The August reading was the lowest level since March 2009. It was also little changed from a preliminary estimate of 47.8.

The HSBC reading echoed the results of the country's recently released official PMI, which slipped from 50.1 in July to its nine-month low of 49.2 in August. It was the first time when China's official PMI had dropped below the dividing point of 50, the threshold that divides expansion from contraction, since November last year.

The employment sub-index also hit its worst level since March 2009. It slipped for the sixth month in a row.

Chief China economist Qu Hongbin, for HSBC in Hong Kong, said, "China's exporters are facing increasing difficulties amid stronger global headwinds. Beijing must step up policy easing to stabilize growth and foster job market conditions."

China's notable weakness also put pressures on governments and central banks of other Asian countries to do more to prevent a steeper decline in demand and industrial production.