Business / Macro

Caixin flash PMI hits 78-month low in September

(Xinhua) Updated: 2015-09-23 10:27

Fixed-asset investment, a major driver of growth, rose 10.9 percent year on year in the first eight months, retreating from the 11.2-percent growth registered in the first seven months, NBS data showed.

The Chinese economy is still operating within the proper range, Chinese President Xi Jinping said in an interview published in the Wall Street Journal on Tuesday ahead of his state visit to the United States from Tuesday to Friday.

Although downward pressure on the economy may persist for a while, the Chinese government has plenty policy room and options to achieve its annual growth targets, the country's top economic planner said in a statement on Tuesday.

In the coming months, China's investment-stimulating policies will help stabilize investment growth to offset the impacts of sluggish exports, and the recovering property market and booming service industry will also contribute to growth even though difficulties for traditional industries will persist, according to the statement.

According to Qu's observation, there have been some signs of cyclical recovery in the property market and better access to funding for infrastructure projects in recent months, which should lay the ground for a modest ground rebound towards the end of the year.

Fiscal expenditure surged in August, pointing to stronger government efforts on the fiscal policy front. Patience might be needed for policies designed to promote stabilization, He said.

China has reduced benchmark interest rates four times and lowered the reserve requirement ratio (RRR) three times to stimulate the economy since November last year..

HSBC forecasts further monetary easing measures, including another 150 bps RRR cut. Fiscal expenditures and municipal bond insurance growth is expected to remain at a fast pace in coming months.

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