China manufacturing, services sectors go in different directions

|By:, SA News Editor

China's HSBC manufacturing PMI fell to a seven-month low of 48.5 (flash 48.3) in February from 49.5 in January. (PR)

In contrast, the official non-manufacturing PMI rose to 55 from 53.4.

The figures come after government data showed that manufacturing PMI slipped 50.2 from 50.5.

"We are seeing a higher share of services in GDP, and we cite that sometimes as one of the signs of rebalancing in the economy," says BBVA economist Stephen Schwartz. "If that's part of a longer-term trend, that's somewhat encouraging."

The readings add to other data that paint a mixed picture of the Chinese economy. The latest numbers are also thought to have been affected by the Chinese Lunar New Year, when production tends to slow down.

The Shanghai Composite is +0.8%.

ETFs: FXI, PGJ, GXC, FXP, YINN, CYB, HAO, KWEB, CNY, ASHR, CHIQ, TAO, DSUM, CHIX, YANG, CQQQ, MCHI, PEK, QQQC, XPP, YAO, CHXX, FXCH, CHII, CHXF, YXI, ECNS, CHIE, CHIM, KFYP, FCA, CHLC, TCHI, CHNA