The Catch in China’s Factory Stabilization: Small Firms Struggle

  • Manufacturing PMI shows divide between large, small companies
  • That’s a problem, as smaller companies are more profitable

A hint of unintended consequence lingers beneath the largely stable result seen in China’s official factory gauge for June. Monetary and fiscal stimulus is propping up the most inefficient part of the $10 trillion-plus economy while nimbler private firms fall behind.

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