China - a tale of two PMIs: China's official manufacturing PMI surprisingly rose to 50.3 in July from 50.1 in June, coming in above consensus of 49.9

Gavin Wendt

China - a tale of two PMIs: China's official manufacturing PMI surprisingly rose to 50.3 in July from 50.1 in June, coming in above consensus of 49.9. By contrast, HSBC's reading dropped to 47.7 from 48.2. The reason for the disparity, says HSBC's Frederic Neumann, is that official PMI is more skewed to larger companies and the HSBC figure reflects the smaller companies. The data indicates how small businesses are more vulnerable to China's efforts to tighten lending, as well as to falling exports.


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