Caixin PMI portends to factory expansion

Chinese factory activity expanded slightly in October despite the rising trade tesions between China and the US, according to a private survey released on Thursday, beating analysts’ expectations.

The Caixin/Markit Manufacturing Purchasing Managers’ Index (PMI) for October, released on Thursday, edged up to 50.1 from 50.0 in September. Economists forcasted a reading of 49.9, just off the 50-mark that divides expansion from contraction.

A reading above 50 indicates expansion, while a reading below that signals contraction.

The slight growth last month was in line with an official PMI survey released on Wednesday.

Policymakers have taken a slew of measures to reduce risks to growth, including injecting more liquidity, lowering financing costs, cutting taxes and fees and pledging more support to private firms.

On Wednesday, a meeting of the Political Bureau of the Communist Party of China Central Committee, which was focused on the economy, reassured that the country will continue its reform and opening-up efforts and stick to a positive fiscal and prudent monetary policy to stabilize the economy.

The meeting also said that China would find ways to help small and medium-sized enterprises, protect legitimate rights and the interests of foreign companies in China and boost the development of capital markets.

Global Times – Agencies