Come Thursday, markets will be digesting a new round of manufacturing data from China, when HSBC releases the flash estimate of the Purchasing Manager’s Index (PMI) for August.
It’s a reading investors and analysts pay close attention to every month for a pulse check on the world’s second-largest economy, never mind that it’s infamously volatile or the fact that the figure will hold less credence as China re-balances away from a focus on the heavy industries towards domestic consumption.
Liu Li Gang, chief China economist at ANZ, who expects this month’s PMI to come in at 51.3, a tad lower than the 18-month high of 51.7 recorded in July, says like it or not, the PMIs will continue to move Chinese markets in a way few other indicators can.
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