| China’s Manufacturing Remains below the Neutral Level | |
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Better Figures from China Fail to Help the Developed World (Continued from Prior Part) China NBS Manufacturing PMI was 49.8 in September
The China NBS (National Bureau of Statistics) Manufacturing PMI (purchasing managers’ index) rose marginally by 0.1 points to a reading of 49.8 in September—compared to 49.7 in August 2015. The PMI didn’t change for the service sector. It was 53.4 in September. New orders have moved back into positive terrain. They rose to 50.20—compared to 49.7 in August. The export demand also rose marginally at 47.9. For the past two consecutive months, the manufacturing PMI reading stayed below the neutral level of 50. This shows that the operating conditions are weakening in the world’s manufacturing hub.
Market reactions remain mixed about China
Over the past month, China-based ETFs like the iShares China Large-Cap ETF (FXI) and the iShares MSCI China ETF (MCHI) rose 3.40% and 4.30%, respectively. Highly traded stocks like Tencent Holdings (TCEHY) rose 2.30%. In contrast, Aluminum Corporation of China (ACH) fell 3.36%. China Mobile (CHL) rose 0.95%. China Petroleum & Chemical (SNP) fell 3.21% over the same period as of September 30.
The China Manufacturing PMI was below 50. This indicates a contracting economic environment. A slight rise in export demand means that the devaluation of the Chinese currency, undertaken to accelerate demand for Chinese goods, is paying off. The Chinese yuan fell ~3.50% against the US dollar over the past year as of September 30. However, the rise in orders shouldn’t be a one-time event. It must continue its uptrend in the future.
Falling crude and industrial commodity prices are impacting the price level growth in major economies. The slowdown in China added to the discomfort. Volatile market conditions and sluggish growth prospects in China could have a domino effect across the globe. It could create a jittery atmosphere.
To learn more, read India’s Central Bank Cut the Rate to Support the Global Recovery.
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China Petroleum & Chemical is a oil exploration company based in China. China Petroleum & Chemical is listed in United States of America. Its market capitalisation is US$ 50.7 billions as of today (€ 52.0 billions). Its stock quote reached its lowest recent point on September 21, 2001 at US$ 10.05, and its highest recent level on May 16, 2008 at US$ 99.92. China Petroleum & Chemical has 1 210 710 016 shares outstanding. |