China’s manufacturing activity fell to a one-year low in April, a private survey showed on Thursday. The flash HSBC Purchasing Managers’ Index (PMI) came in at 49.2, compared with a Reuters forecast for a 49.6 print, and following the final March reading of 49.6. A figure below 50 signals contraction.
Over the weekend, the People’s Republic of China slashed the reserve requirement ratio (RRR) of major banks. The 100 basis points cut to 18.5 percent is the biggest since 2008, at the height of the global financial crisis.
The move is the latest in a series of aggressive measures by policymakers to stem further slowdown in the world’s second largest economy.