The continued decline in China's manufacturing activity, reflected in twin manufacturing surveys released today, highlights the risk the world's second largest economy now poses for global growth. The weak PMI reinforces our view that there is 30% chance China's GDP may fall below 7%, wrote Zhiwei Zhang, chief China economist at Nomura. Hongbin Qu, chief economist, China & co-head of Asian economic research at HSBC says that growth is likely to continue slowing as Beijing refrains from using stimulus. Last month, the bank downgraded its growth forecast for China from 8.2% to 7.4%, below the government's target of 7.5%. (VIEW LINK)
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