Exchange traded funds that invest in Chinese stocks gained in early U.S. trading Monday after an index of purchasing managers rose in October.

HSBC’s flash purchasing managers’ index climbed to 51.1 in October from 49.9 the previous month.

“Thanks to the pick-up in new orders and output, the headline flash PMI rebounded back into expansionary territory during October, marking a steady start to manufacturing activities in the four quarter,” said Qu Hongbin, China economist at HSBC, in a Reuters report.

“Meanwhile, inflation components within the PMI results confirmed stable output prices growth and slower input price inflation. All these data confirm our view that there is no risk of a hard landing in China,” he said.

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