China has been hit by a series of disappointing economic results with factory activity contracting the most in two years. New orders fell dashing hopes that the world’s second-largest economy may be steadying.<br /><br /> A private survey – the Caixin/Markit China Manufacturing Purchasing Managers’ Index – the PMI – dropped to 47.8 in July. That’s the lowest in two years and down from 49.4 in June.<br /><br /> The results which focus on small to mid-sized companies come on the back of the official survey at the weekend with the PMI index falling to 50.<br /><br /> Growth, which reached a peak in early 2014 has seen a slow decline flatlining from March. New orders contracted while factory output shrank for the third consecutive month.<br /><br /> The deteriorating conditions forced companies to cut staffing for the 21st straight month and factories had to reduce selling prices to a six-month low due to increasing competition.<br /><br /> The central bank has already cut interest rates four times since November and repeatedly eased lend
