Chinese manufacturing activity stuck in contraction

|By:, SA News Editor

HSBC Chinese flash manufacturing PMI has indicated contraction for a fourth consecutive month, although the gauge has edged up to 48.3 in April from 48 in March. Consensus was for 48.4.

"Domestic demand showed mild improvement and deflationary pressures eased," said HSBC, "but downside risks to growth are still evident as both new export orders and employment contracted."

HSBC believes that the Chinese government will add to its recent stimulus measures and that the People's Bank of China "will keep sufficient liquidity."

The Shanghai Composite is -0.5%. (PR)

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