Chinese manufacturing grew at a slower pace in April due to tightening policies, a survey of purchasing executives showed yesterday.

The HSBC China Manufacturing Purchasing Managers' Index, a gauge of manufacturing activity, fell to a six-month low of 55.4 in April. It compared with a high of 57 in March. But it was still above 50, the neutral threshold.

"April's PMI points to a moderate slowdown in the expansion of manufacturing activity," said HSBC chief economist Qu Hongbin. "We see this as good news because it means that Beijing's policy tightening is starting to cool the overheated economy, which will help to contain inflationary risks."

The HSBC survey contrasted with the official PMI, compiled by the China Federation of Logistics and Purchasing. The official PMI still increased 0.6 points to 55.7 in April.

While the PMI is weighted heavily toward big domestic companies, the HSBC survey is slanted more toward privately owned and export-oriented firms.