China Flash PMI splats

The August HSBC Flash PMI is out and has come in weak at 50.3 versus 51.5 expected:

“The HSBC Flash China Manufacturing PMI moderated  to 50.3 in August, down from 51.7 in July. Both domestic  and external new orders rose at slower rates compared  to the previous month. Meanwhile, disinflationary  pressure returned as input and output prices contracted  over the month. Today’s data suggest that the economic  recovery is still continuing but its momentum has slowed  again. Therefore, industrial demand and investment activity growth will likely stay on a relatively subdued  path. We think more policy support is needed to help  consolidate the recovery. Both monetary and fiscal  policy should remain accommodative until there is a more sustained rebound in economic activity.”

Here are the internals:


And charts:


I got two words for ya: housing bust.

Aussie no likeee:



  1. Hong Kong’s Rich Get Richer as Economy Shrinks – Bloomberg

    … extract …

    The median home price was 14.9 times the median household income in 2013, the highest ratio worldwide, according to Demographia, a consulting firm based in Illinois. Hong Kong has more people with net assets worth at least $10 million among 30 cities tracked by New World Wealth in a study released this month. Hong Kong’s economy shrank last quarter as consumption and business investment fell, while unemployment rose in July.

    Dissatisfaction with the city’s government has climbed to 63 percent, the highest since 2004 when protests spurred the departure of then-Chief Executive Tung Chee-hwa, according to a survey by the Hong Kong Transition project released in April. The city of 7.2 million has lured more than $100 billion of inflows since August 2008 as the Federal Reserve cut interest rates, the city’s central bank said. A currency peg ties Hong Kong’s monetary policy to the U.S.

    2014 10th Annual Demographia International Housing Affordability Survey

  2. Goldman Warns Additional Chinese Stimulus Risks Global Financial Stability | Zero Hedge

    China’s housing market is plunging—and dragging Macau’s casino revenue with it – Quartz

    China likens Xi to Deng for anniversary … ChannelNewsAsia

    China Looks at Ways to Root Out Corruption — Permanently – China Real Time Report – WSJ (google search title if blocked)