Chinese manufacturing activity expanded at a slightly slower rate in November, supported mainly by domestic demand, banking giant HSBC said Monday.

HSBC's purchasing managers' index (PMI) stood at 50.8 in November, the second-highest reading in eight months despite easing marginally from October's 50.9, the bank said in a statement.

However, it is well up from the preliminary 50.4 HSBC gave on November 21.

The index tracks manufacturing activity in China's factories and workshops and is a closely watched gauge of the health of the economy. A reading above 50 indicates growth, while anything below signals contraction.

The final PMI reading for November provided further evidence that the world's second-largest economy is gaining momentum, although analysts have warned that uncertainties remain.

"China's manufacturing sector kept relatively steady growth momentum in November," Qu Hongbin, HSBC's economist in Hong Kong, said in the statement.

Output growth was bolstered by quicker expansion of new business, largely driven by domestic demand, according to the bank.

But Qu said policies should be kept accommodative, given "modest inflationary pressures" as restocking activities slowed slightly and companies cut jobs last month, reversing a slight expansion of payroll numbers in October.

The HSBC release came a day after China's National Bureau of Statistics said its official PMI for November came in at 51.4, unchanged from October and the highest since April 2012.

China's economy, an important driver of regional and global growth, expanded 7.8 percent in July-September, snapping two quarters of slowing growth.