2 Jun 2014
China's growth seems to be stabilizing - BTMU
FXStreet (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ, sees today's PMI release a positive signal regarding Chinese economic growth prospects.
Key Quotes
"The release over the weekend of the latest official manufacturing PMI survey has also provided further reassurance that the economic growth in China has at least started to stabilize in the near-term. The official manufacturing PMI survey from China revealed that business confidence increased for the third consecutive month rising by 0.4 point to 50.8 in May reaching its highest level since the end of last year."
"Within the sub-components, new orders increased by 1.1 percentage point and new export orders by 0.2 percentage point. It follows the announcement late last week that policy makers in China will “appropriately” lower the reserve requirement for banks that have extended a certain amount of loans to rural borrowers and smaller companies."
"It is also setting up a re-lending facility to boost loans to small companies setting the quota for 2014 at CNY50 billion. However, downside risks to growth from the slowing real estate sector remain. The Soufun property index of 100 cities declined by 0.3% in May which was the first monthly decline since June 2012."
Key Quotes
"The release over the weekend of the latest official manufacturing PMI survey has also provided further reassurance that the economic growth in China has at least started to stabilize in the near-term. The official manufacturing PMI survey from China revealed that business confidence increased for the third consecutive month rising by 0.4 point to 50.8 in May reaching its highest level since the end of last year."
"Within the sub-components, new orders increased by 1.1 percentage point and new export orders by 0.2 percentage point. It follows the announcement late last week that policy makers in China will “appropriately” lower the reserve requirement for banks that have extended a certain amount of loans to rural borrowers and smaller companies."
"It is also setting up a re-lending facility to boost loans to small companies setting the quota for 2014 at CNY50 billion. However, downside risks to growth from the slowing real estate sector remain. The Soufun property index of 100 cities declined by 0.3% in May which was the first monthly decline since June 2012."