Mainland manufacturing slows - HSBC


Preliminary market data compiled by HSBC suggest that the mainland manufacturing sector has barely grown. The Flash Purchasing Managers' Index fell to an 11-month low of 50.1 in June.

Readings above 50 indicate expansion. An index tracking new orders also dropped to its lowest level since July 2010. The bank's chief China economist, Qu Hongbin, said the slowdown was the effect of tightening mainland policy measures, weak external demand and inventory destocking. He said worries about an economic hard landing were unwarranted.

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