The HSBC flash Purchasing Managers' Index of China’s manufacturing sector in May is 49.1,which is still lower than expected. It reflects that the policies haven’t taken effect after central bank cut interest rate. ANBOUND research team believes that weak domestic demand further worsens environment of China’s manufacturing industry. Meanwhile, the pressure of economic slowdown hasn’t been alleviated and more policies to steady growth should be introduced. If economic data of May falls again, China’s central bank might further loosen monetary policies to deal with continuously increased economic downward pressure.