China Eastern is taking measures to overcome competition by adjusting air fares and decreasing short-haul routes that overlap with the high-speed train routes.
China’s July PMI was more than a disappointment—it was a confirmation of weakness Across the board, all items within China’s (FXI) Manufacturing PMI (Purchasing Managers Index) were down. The 47.7 value was the third decreasing consecutive value below the 50 point neutral line. Production and demand contracting Output contracted for the second month in a […]
Back to Part 2 The government sees a growth threshold to deploy stimulus Premier Li Keqiang was quoted by Xinhua News Agency saying that the 7% will be the least accepted growth threshold, given that China must continue its prosperity path through 2020. It seems pretty clear that stimulus will be used if growth is […]
China has been lucky versus the other BRICs with regards to inflation and the uptick in April is not relevant. Inflation, as measured by the consumer price index, is a key indicator of health in an economy. When inflation increases too fast, economic growth is choked and slows down either by reduced consumer spending or […]
The April Services PMI showed drops across most indices comprising the headline value If you want to feel your life is not as bad as it could be, look at the China Services PMI. All indices composing the headline figures slowed down, with the exception of prices charged, just to throw some unwarranted inflation into […]
Amidst a wave of disappointing data from China, the jump in car sales seems promising, but it is likely to be unsustainable Car sales are a strong indicator of the health of consumer spending in a country. Durable goods, such as cars, are generally “big ticket” items that last more than three years. Given their […]
While the overall PMI was no surprise due to the Flash PMI release, the surprise came from several drivers falling below 50 The China PMI Flash a week ago had foreshadowed what would be a bad PMI reading, but the breakdown by indices was able to disappoint even more. Hongbin Qu, HSBC’s Chief Economist for China & Co-Head of […]
