![]() |
Workers load cargo at Lianyungang, Jiangsu province. HSBC's preliminary August PMI for China was 49.8. [Photo / China Daily] |
A preliminary reading of 49.8 for a manufacturing index released by HSBC Holdings PLC and Markit Economics on Tuesday compares with a final reading of 49.3 for July. The final August number is due on Sept 1. A reading below 50 indicates a contraction.
The data suggests that growth in China is moderating rather than collapsing and the slide in the index in July may have been a one-off "blip", HSBC said. Investors are focused on the outlook for the nation as US growth falters and European officials grapple with a debt crisis that is yet to be resolved.
"This should help lower fears of a hard landing akin to 2008 autumn's sharp slowdown," said Qu Hongbin, a Hong Kong-based economist for HSBC. "Inflation, not growth, remains the top near-term macro risk."
The Shanghai Composite Index rose 1.5 percent to 2554.02 at the close.
Faltering US and European growth and a deepening debt crisis in the eurozone have triggered a four-week rout that's wiped out more than $8 trillion in global equity values. China's commerce ministry cautioned on Tuesday that exporters face weak demand and rising costs.
"China is on track for a soft landing despite the external risks, with accelerating inland growth and investment in public housing and new projects," said Zhang Zhiwei, chief China economist at Nomura Holdings Inc in Hong Kong, before the announcement.
HSBC's preliminary index, known as the Flash PMI, is based on 85 to 90 percent of responses to a survey of executives at more than 400 companies.
The preliminary number has matched the final reading twice since HSBC began publishing the series in February. The final reading fell below 50 in July for the first time in a year. The official manufacturing index released by the national statistics bureau and the China Federation of Logistics and Purchasing had a reading of 50.7 in July.
China's central bank has raised interest rates five times since mid-October, imposed loan quotas and raised banks' reserve requirements nine times since November to cool inflation and growth.
Bloomberg News
Comments: (China Daily Website - Connecting China Connecting the World

USEUROPE
AFRICAASIA
中文Français


- HOME
- CHINA
- WORLD
- BUSINESS
- LIFESTYLE
- CULTURE
- TRAVEL
- WATCHTHIS
- SPORTS
- OPINION
- REGIONAL
- FORUM
- NEWSPAPER
- China Daily PDF
- China Daily E-paper
- MOBILE
BACK TO THE TOP

Copyright 1995 -
. All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
License for publishing multimedia online 0108263
About China Daily
Advertise on Site
Contact Us
Job Offer
Expat Employment
FOLLOW US

)
Sorry, the page you requested was not found.
Please check the URL for proper spelling and capitalization. If you're having trouble locating a destination on Chinadaily.com.cn, try visiting the Chinadaily home page
Registration Number: 130349