"After adjusting for seasonal factors, the HSBC Purchasing Managers’ Index™ (PMI™) – a composite indicator designed to give a single-figure snapshot of operating conditions in the manufacturing economy – registered 48.4 in May, down slightly from 49.3 in April, signalling a seventh successive month-on-month worsening of Chinese manufacturing sector operating conditions."
Here is what Hongbin Qu, HSBC's Chief Economist - China had to say about the PMI data:
“May’s final reading confirmed that manufacturing growth slowed further on weakening demand from both global and domestic markets. This points to a continuous slowdown of the real economy in 2Q and should promote Beijing to step up easing efforts in the coming months. On top of monetary easing via additional RRR cuts and one 25bp rate cut, Beijing policy makers should allow fiscal measures and private investment to play a bigger role in supporting growth.”
Bloomberg article from today:
"China will be able to “cope” if Greece leaves the euro region and no large-scale stimulus is needed for the economy, a researcher for the nation’s top economic planning body said."
The Shanghai Stock Exchange A Share Index is up 0.56% at 2,498.9.