The Caixin/S&P Global manufacturing sector purchasing managers survey came in at 49.2 in July.
It showed that China’s manufacturing activities entered contraction territory for the first time since April.
Manufacturing PMI came in at 49.2 in July, against the 50.3 figure economists had expected.
PMI data above 50 indicates expansion, while data below 50 indicates contraction.
The Caixin survey comes a day after official statistics showed the country’s factory activity contracted for the fourth month in a row to a PMI of 49.3.