If you look at the recent economic data coming out of China, it is clear the economy is in a bottoming process. The question is whether the measures used to keep the economy from sliding further are sustainable.
The most recent piece of data confirming the stabilisation in China is the HSBC Flash PMI print, which came in at 50.4, a 13-month high. Previously, non-manufacturing, retail sales and credit data had all shown China in a period of more rapid GDP growth after a fall to the lowest GDP growth levels since 1999. Below are a number of articles highlighting not just the recent print but also prior data releases and the ongoing debate about re-balancing and economic growth in China. In my view, the macro view these articles present show policy still trying to effect a re-balancing. But policy makers are finding that doing so is cratering growth and they are therefore going back to the well for the same unbalanced old trade-based economic model.
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