China's manufacturing activity contracted for the third month in a row in March, hitting an eight-month low, according to HSBC's preliminary purchasing managers' index (PMI) released on Monday.

The HSBC/Markit China flash manufacturing PMI for March dipped to 48.1 from a final reading of 48.5 in February, said data company Markit in a statement.

PMI above 50 percent indicates expansion and below 50 percent, contraction.