The purchasing manager's index rose to 55.7 in April from 55.1 in March. Readings above 50 are considered positive. While demand for Chinese exports is still apparently strong, Chinese officials are concerned that trading partners are not seeing similar economic strength and that may crimp demand for Chinese good later this year.
Of course, inflation was also mentioned as a possible dampening effect and rising producer prices could mean Yuan appreciation is seen later rather than sooner. Still, traders are betting the Yuan will rise within the next year. Separately, China announced that is has pared its holdings of US-issued debt to $877.5 billion as of February from $894.8 billion at the end of last year. China is still the biggest holder of US Treasuries, followed by Japan ($768.5 billion) and the UK ($233.5 billion).
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