- Analytics
- News and Tools
- Market News
- China: PMIs disappoint in November (again) – UOB
China: PMIs disappoint in November (again) – UOB
Economist at UOB Group Ho Woei Chen, CFA, assesses the latest PMI readings in the Chinese economy.
Key Takeaways
Both the official manufacturing and non-manufacturing PMIs continued to weaken in Nov against consensus expectation for a slight improvement after the National Day holidays in Oct. Despite the PBOC stepping up liquidity injections, activities have also failed to pick up.
Within the non-manufacturing sector, the construction activity index strengthened in response to the government’s support measures for infrastructure and the property sector but the services activity index tumbled into contraction for the first time this year. The economic momentum thus appears to be much weaker than expected.
The surge in liquidity injections and possible relaunch of the pledged supplementary lending (PSL) facility may delay further rate cuts to 1Q24 or even 2Q24. Thus, we push back our call for further interest rates cuts to 1Q24. Another 25 bps cut to banks’ reserve requirement ratio (RRR) may be delivered earlier to provide additional market liquidity.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
