“The policy window is still open,” Liu Li-Gang, chief China economist at ANZ in Hong Kong, said in an interview on the Australian Broadcasting Corp. today. Key indicators including industrial production and power consumption are showing that the Chinese economy is slowing faster than normal, Liu said.
China’s manufacturing contracted for an 11th straight month in September, a private survey found yesterday, increasing pressure on the government to bolster growth in the world’s second-largest economy. Speculation that authorities will take steps to counter a deepening slowdown spurred a 4.1 percent surge in the benchmark Shanghai Composite Index in the week’s final two trading days.
The purchasing managers’ index from HSBC Holdings Plc and Markit Economics had a final reading of 47.9 for September, compared with 47.6 in August and a preliminary level of 47.8 released Sept. 20.
A government-backed index for manufacturing will be released tomorrow. The gauge probably rose to 50.1, just above the expansion-contraction dividing level of 50, from a nine- month low of 49.2 in August, based on the median estimate of 21 analysts surveyed by Bloomberg News.
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