Monday, August 25, 2014

Expectations of More Stimulus from Beijing

As China’s fragile economic recovery loses momentum, expectations are growing that Beijing will unleash fresh stimulus to ensure delivery on its growth target of 7.5 percent.

The last month has seen a slew of disappointing economic data – from manufacturing to credit growth – raising concerns that the world’s second-largest economy may be headed into a renewed soft patch.

HSBC’s preliminary reading of China’s manufacturing purchasing managers’ index (PMI) for the month of August dipped to 50.3 from July’s 18-month high of 51.7, missing forecasts for 51.5.

CNBC

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