Hong Kong (CNN Business) Markets in China dipped Monday despite encouraging manufacturing data and a couple of positive IPOs. Analysts said the Chinese economy is not out of the woods yet, and investors are still concerned about escalating US-China trade tensions.

Official and private surveys of China's manufacturing activity rose more than expected in September, data showed Monday.

The government's official PMI for September also beat analyst estimates, increasing to 49.8 from the 49.5 it registered in August. However, that's still below the 50-point level that indicates growth over the previous month.

But shares of several Chinese companies dropped after the United States launched investigations into some and hit others with sanctions. US authorities are also reportedly considering delisting Chinese companies from American stock markets.