An expansion of China's manufacturing sector is predicted to accelerate in March - suggesting stable economic growth - stimulated by stronger market demand and increasing industrial production, HSBC Holdings PLC said on Thursday.

A preliminary reading of the bank's manufacturing Purchasing Managers' Index (PMI) climbed to 51.7 in March from 50.4 in February, indicating faster development of the sector.

HSBC said it may be the fifth consecutive month for the PMI reading to stay above 50, the point separating contraction from expansion.