China Feb factory activity shrinks more than expected

SHANGHAI: Activity in China's manufacturing sector shrank for the seventh month in a row in February and more sharply than expected, an official survey showed, suggesting the government will have to ramp up stimulus to avoid a deeper economic slowdown.

Some investors had been bracing for a negative after the central bank unexpectedly eased policy late on Monday, injecting an estimated $100 billion worth of cash into the banking system to cushion the pain of upcoming reforms such as restructuring bloated state enterprises.