China's Aug Caixin manufacturing PMI may correct lower after strong rise in July

The Markit/Caixin PMI, a private gauge of manufacturing activity which focuses more on small and mid-sized firms, is due on Sept. 1. In July Caixin showed the highest manufacturing growth since February 2015. For the month of August, analysts expect it to fall to 50.1, compared with the previous month's reading of 50.6.

China's official manufacturing PMI data will also be released on Sept. 1, along with the official non-manufacturing PMI. In July, the official and Caixin factory reading showed a marked divergence. Caixin posted highest manufacturing growth since February 2015, while the government showed manufacturing starting to slump.

The official manufacturing Purchasing Managers' Index (PMI) is expected to hold at 49.9 in August, unchanged from July, according to the median forecast of 35 analysts polled by Reuters.

"We estimate the Caxin index will fall to 49.8 (consensus 50.2) and thereby close the gap to the official PMI which was much more subdued in July," said Danske Bank in a report.