By Richard Silk 

BEIJING--The preliminary HSBC China Manufacturing Purchasing Managers Index, a gauge of nationwide manufacturing activity, rose slightly to 48.3 in April, compared with a final reading of 48.0 in March, HSBC Holdings PLC said Wednesday.

The index was still in negative territory, as a reading below 50 indicates contraction from the previous month, while one above 50 indicates expansion.

Manufacturing output and new orders continued to fall during the month, HSBC said, though at a slower rate than in March. New-export orders also fell in April after an improvement last month, while employment declined at a faster rate.

"Domestic demand showed mild improvement and deflationary pressures eased, but downside risks to growth are still evident as both new export orders and employment contracted," HSBC economist Qu Hongbin said in a statement.

The preliminary PMI figure, also called the HSBC Flash China PMI, is based on 85% to 90% of total responses to HSBC's PMI survey each month, and is issued about one week before the final PMI reading.

Write to Richard Silk at richard.silk@wsj.com