HSBC Survey Finds Slight Contraction in Chinese Manufacturing in August
HONG KONG — A survey of manufacturers in China on Tuesday showed that factory activity appears to have contracted slightly in August — findings that underpin the widely held perception that the giant <a href="http://www.ghdforsalediscount.com/limited-edition-pink-ghd-iv-styler-p-5742.html"><strong>cheap ghds uk</strong></a> Chinese economy is growing at a more moderate, but still robust, pace. The initial findings of the poll, published by HSBC on Tuesday, showed a reading of 49.8 in August — a touch below the 50 mark that separates expansion from contraction — as Beijing’s efforts to cool down the pace of growth have borne fruit. For the past year and a half, Chinese policy makers have been working to rein in booming growth and the sharp price rises that have accompanied it. Formerly free-flowing bank credit has become harder to obtain, for example, as banks were instructed to lend less. These measures have slowed the economy, but at a gradual pace that leaves room for more tightening efforts by Beijing in coming months, some analysts believe. Despite being below 50 for the second month in a row, the closely watched HSBC purchasing managers’ index on Tuesday indicated that China’s economy remains on a firm footing. The August reading was an improvement from the level of 49.3 recorded in July, while a subindex measuring new export orders rose to a three-month high. The <a href="http://www.monclercoats-cheap.com/"><strong>cheap moncler coats</strong></a> data suggest that the risks that China will see a “hard landing,” or a sharp slowdown akin to what was seen in late 2008, are remote, Qu Hongbin, China economist at HSBC, commented in a note accompanying the release of the survey results Tuesday. Concerns that the United States and Europe, both key markets for goods made in China, could slow markedly if the current market turmoil persists have clouded the outlook for the Chinese export sector. Rising wages across the nation also have added to manufacturing costs, eroding some of the competitive advantage that China has long had over manufacturers in other parts of the world. Reflecting these concerns, Jiang Yaoping, the Chinese vice commerce minister, said in a statement Tuesday: “Debt crises in developed countries are bringing rising pressure and challenges to the vast emerging market countries, including China. “China’s trade development is facing multiple pressures, including sluggish external demand and rising costs and intensifying global competition,” Mr. Jiang added, according to Reuters. Analysts broadly agree that exports, which have remained strong in recent months despite volatile global financial markets, are set to face increasing headwinds in coming months. Mr. Qu of HSBC, however, stressed that <a href="http://www.ghdforsalediscount.com/ghd-2010-new-blue-serenity-p-5734.html"><strong>uk ghd straighteners</strong></a> the drag on overall growth should be limited, given that China’s growth is increasingly driven by domestic demand. “We are still expecting the economy to grow by around 9 percent for the year as a whole, despite Beijing’s ongoing credit tightening at home and turmoil in markets overseas,” Mr. Qu said in his note Tuesday. Moreover, a slowdown from nearly a 10 percent expansion in late 2010 and early 2011 to around 8.5 to 9 percent in the second half of 2011 would help contain inflation, which remains elevated, he said. “Growth in China is moderating, not collapsing. Inflation, not growth, remains the top near-term macro risk for policy makers,” Mr. Qu said, adding that the central bank was likely to keep in place its tightening measures for the time being. The initial manufacturing survey from HSBC will be followed by a final reading based on more complete results on Sept. 1. A separate survey compiled by the Chinese authorities will be released the same day.
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