Rebound of Caixin PMI signals improved demand

The rebound of China's manufacturing activity in November indicated improved external and domestic demand in light of effective government measures to shore up growth and the recent de-escalation of the trade tension between Beijing and Washington, according to a survey of private and smaller firms on Monday, reinforcing the optimistic official data released over the weekend.

Analysts called for continued accommodative government policies to further spur demand, boost manufacturing investment and lift corporate confidence to consolidate the improvement in the manufacturing sector and prevent a sharp economic slowdown.

The Caixin China General Manufacturing Purchasing Managers' Index rose for the fifth straight month to 51.8 in November from 51.7 in the previous month, indicating the fastest expansion since 2017, according to a survey jointly released by media group Caixin and information provider IHS Markit.