Monday, 4 January 2016

China's PMI to be weak for next few mths on oversupply: CMR Grp

China's Caixin Purchasing Managers' Index (PMI), a closely-watched barometer of manufacturing activity, fell to 48.2 in December, from 48.6 in November, contracting for the tenth month. A Reuters poll had a forecast for 49.0.

The official PMI data released over the weekend, meanwhile, showed the index at 49.7 in December, in line with forecasts and up a tad from November's 49.6.

Speaking to CNBC-TV18, David Mann, Asia Markets- Economist, Standard Chartered and Ben Cavender of China Market Research Group share their views on the low macro reading and the Asian market's reaction on the same.

Cavender says the market's reaction is not something to be worried about as it is policy-driven, but the PMI is likely to range lower for the upcoming months due to a manufacturing oversupply and weak demand from emerging markets (EMs).

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