China cut interest rates by a quarter percentage point over the weekend, while a survey showed HSBC's PMI climbing from 49.7 to 50.7 in February, the strongest level since July. "Deflationary risk and the property market slowdown are two main reasons for the rate cut this time," said a central bank official. In the last few months, China has been showing further signs of flagging economic growth, with GDP dipping to 7.3% in Q4 - its slowest rate in over two decades, and CPI sliding to 0.8% in January - its weakest showing since late 2009.