China Manufacturing Index Shows Contraction - Bloomberg

China Manufacturing Index Shows Contraction - Bloomberg: "“China’s growth momentum will continue to weaken in coming quarters,” Dariusz Kowalczyk, senior economist and strategist at Credit Agricole CIB in Hong Kong, said in a note. “The market continues to underestimate the degree of the ongoing slowdown and further negative surprises are in stock as the year progresses.”"

China Credit Trust Co. has repaid the principal to some investors of its 3-billion-yuan ($495 million) high-yield product, according to investors who accepted the bailout offer. Averting the nation’s biggest trust default in at least a decade may reinforce investors’ belief in implicit guarantees and the government’s willingness to back risky products, stoking their appetite for products in the $1.7 trillion trust market.

China will struggle to maintain 7.5 percent economic growth this year and next year, Li Daokui, a former People’s Bank of China academic adviser, said last week at the World Economic Forum in Davos, Switzerland. He said that excessively fast declines in property prices could be a risk, while shadow banking isn’t a major threat.

HSBC’s survey is based on responses from more than 420 manufacturers and is weighted more toward smaller companies. The official PMI is based on questionnaires sent to about 3,000 companies.

'via Blog this'