August PMIs point to a moderated growth momentum and call for further monetary easing

Summary

August Manufacturing PMI figures suggest that China’s economy is losing growth momentum. The PMI components show that new export order index contracted to the 50.0 dividing line, indicating the uncertainties of the external demand while Small and Medium Enterprises face difficulties in terms of bank credit accessibility. From the policy stance, we anticipate the authorities will adopt more growth-supportive easing measures.

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