A general-purpose intelligent humanoid robot developed by Shenzhen-based AI2 Robotics works at an automotive factory. File photo: Courtesy of AI2 Robotics

China's Caixin manufacturing purchasing managers' index (PMI) rose to 50.4 in June, up 2.1 points from one month earlier, returning to expansion territory following a brief contraction in May, according to a Caixin-sponsored survey released Tuesday.

A reading above 50 signals an expansion in activity, while a number below that signals a contraction. The reading followed China's official factory activity data released by the National Bureau of Statistics (NBS) on Monday, which stood at 49.7 for June - up 0.2 points from May.

Both supply and demand recovered in June.  Amid a slightly improvedtrade environment, manufacturers made efforts to promote sales, causing total new orders to return to expansion. Stronger demand, in turn, boosted  supply, with the output subindex rebounding by more than 4 points and moving into expansionary territory, the Caixin data showed.

"The Caixin China General Manufacturing PMI came in at 50.4 in June, up 2.1 points from the previous month and back in expansionary territory. This was the eighth time in nine months that the sector showed growth, indicating improving market conditions," Wang Zhe, a senior economist with Caixin Insight Group, wrote in a note published on Tuesday.

Wang added that earlier policy measures aimed at stabilizing the economy continuing to take effect, the overall operation of the economy remains stable, alongside a gradual recovery of market conditions. However, we must recognize that the external environment remains severe and complex, and the problem of insufficient effective domestic demand has yet to be fundamentally resolved.

China is confident and capable of minimizing the uncertainties and adverse impacts of external shocks, promoting sustained and healthy economic growth as existing stimulus policies have shown results, which would be reinforced by new policy measures to be gradually rolled out, Li Chao, spokesperson for the National Development and Reform Commission, the country's top economic planner, said on June 26.