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China’s Rebound Remains Fragile as Factories, Property Slump

  • Factory activity unexpectedly contracted in July, PMI shows
  • Property sales from China’s top developers continued to drop
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China’s factory activity unexpectedly contracted in July while property sales continued to shrink, highlighting the fragility of the economy’s recovery amid sporadic Covid outbreaks and adding to calls for more policy stimulus to fuel growth.

The official manufacturing purchasing managers index fell to 49 from 50.2 in June, the National Bureau of Statistics said Sunday, dropping below the 50-mark that indicates a contraction in activity. A private survey on Monday also showed a weakening in factory production, while separately, data from China’s top 100 property developers showed the housing market continued to slump last month.