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China Caixin PMI Rose Above 50 in June, Signaling Expansion

  • Output increased to 50.6 while new orders also posted gains
  • UBS: ‘China has yet to be really affected by liquidity’
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Photographer: AFP via Getty Images
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A private gauge of China’s manufacturing exceeded estimates in June, adding to evidence that the economy is maintaining some momentum after a strong start to the year.

"Economic activity in China has yet to be really affected by liquidity and also supervisory tightening," Donna Kwok, senior China economist at UBS Group AG in Hong Kong, said in a Bloomberg Television interview. "Even though investment in the economy is softening somewhat, we’re getting enough of a counterbalance to offset that and as a result the government has more room still to continue with that supervisory tightening."