Many experts believe China’s economy is headed for a turnaround. Recent analyses of the country’s manufacturing activity show that this may in fact be true.
This month saw an increase in the preliminary HSBC China Manufacturing Purchasing Managers Index, which reached 50.4 compared with a 49.5 reading in October.
Fox Business explains that a reading over 50 implies growth, while readings below reveal a dip in the industry.
Qu Hongbin, HSBC Chief Economist for China said the reading “confirms that the economic recovery continues to gain momentum towards the year end.”
After HSBC’s report, various markets in the region saw immediate improvements. Hong Kong stocks climbed to recover around 142 point, while the yuan also rose against the dollar.
Still, economists are calling for additional loosening of monetary policies in the region. According to Citigroup’s Ding Shuan, China is likely to listen, at least for now.
“There have been few signs of overheating yet, so in the short term more loosening policies can be expected,” Nomura’s economist Zhang Zhiwei agreed.
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