CGI Response: “More bad news about weakening economic momentum”

Attached and below are comments about the Chinese economy from a source I find balanced and has a long term perspective. All news on China cannot be good, and when there are problems we shall try to seek sources that address them in a balanced way. This is one of those times. So to be clear – the view is not that the Chinese economy is fundamentally flawed but demand is down and they expect action to stimulate demand.

 

On behalf of Dr. Jianguang Shen:

The final HSBC manufacturing PMI signalled that the business conditions in China have worsened further in April, due to weak new orders at home and aboard. This adds to the recent list of bad news from China’s economic data, including falling new home sales and property prices, tumbling power generation and lower raw material demand. We continue to expect the government to launch more effective stimulus measures soon, in order to keep growth momentum from easing further in 2Q.

Sincerely,
Jianguang Shen
Mizuho Securities Asia Limited

HSBC PMI 140505



Categories: Econonomics, Exports, Imports, Uncategorized

Tags: ,

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: