Ed’s Daily Notes for June 3rd   4 comments

Bloomberg: China HSBC Manufacturing Index Rises to Four-Month High

A Chinese manufacturing gauge rose to a four-month high, signaling that the economy is stabilizing even as job cuts and weakness in the property market underscore pressure on the government to do more to support growth.

A Purchasing Managers’ Index (MXAP) from HSBC Holdings Plc and Markit Economics was at 49.4 in May, up from 48.1 in April. At the same time, the number was below the 49.7 median forecast in a Bloomberg News survey of analysts.

The government will cut reserve requirements for some banks, boost support for small businesses and speed up spending of budgeted funds, as Premier Li Keqiang seeks to meet an official expansion target of about 7.5 percent this year. Authorities are contending with a property slump that threatens growth while they try to sustain efforts to limit shadow banking, pollution and corruption.

“The final PMI reading for May confirmed that the economy is stabilizing, but it is too early to say that it has bottomed out, particularly in light of a weaker property sector,” Qu Hongbin, HSBC’s chief China economist in Hong Kong, said in a statement. “Stronger policy support is warranted,” and “we expect both monetary and fiscal policy to be loosened gradually over the coming months,” Qu said.

I want to see that number closer to 50 before I consider investing in China, which has too many problems right now.

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Posted June 3, 2014 by edmcgon in China, News

4 responses to “Ed’s Daily Notes for June 3rd

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  1. Ed, ED….. its June… Sorry you had a bad night….Thanks for what you do…

  2. Ed, what do you think of the Sinead new look?

    Sinead O’Connor turns vamp to promote new album

    http://music.msn.com/music/article.aspx?news=870288

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