John Robertson

Chinese manufacturing activity is still falling short of escape velocity for the resources industry. The improvement in Chinese manufacturing is enough to have helped stabilise resources sector equity prices but not enough to initiate a cyclical recovery. The chart at (VIEW LINK) has been updated to include the China manufacturing purchasing managers index for October published earlier today by the National Bureau of Statistics of China and the S&P/ASX 300 resources index. The chart illustrates how the relatively muted Chinese industrial expansion over the past two years has kept a lid on a more robust stock price recovery.


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