Via Caixin: The Caixin China Composite PMI™ data (which covers both manufacturing and services) signalled a solid increase in total business activity across China in November. The Composite Output Index rose from 52.0 in October to 53.2, to indicate the steepest rate of growth for 21 months. The upturn was driven by strong performances across

Via Sinocism: And do not expect any new policy moves before for the Central Economic Conference later in December, and even then expect more battening down the hatches and struggling and grinding through economic issues rather than a big set of stimulus measures China will maintain currency stability, prudent monetary policy: PBC – Global Times

Via Markit: PMI data signalled a further modest improvement in the health of China’s manufacturing sector during November. New business rose strongly, which underpinned a further solid increase in production. Notably, new export orders saw the first back-to-back monthly rise for over a year-and-a-half. Staffing levels were broadly stable following a seven-month sequence of decline,

From China’s NBS over the weekend comes the PMIs: In terms of enterprise size, the PMI of large enterprises was 50.9% , an increase of 1.0 percentage point from the previous month ; the PMI of medium-sized enterprises was 49.5% , an increase of 0.5 percentage points from the previous month ; the PMI of small enterprises was 49.4% , an increase of 1.5 percentage points from the previous month . From the perspective of the classification index, of the five classification indexes that constitute

Some more nice work from Zero Hedge today on Chinese financial stresses: Something is seriously starting to break in China’s financial system. Three days after we described the self-destructive doom loop that is tearing apart China’s smaller banks,  where a second bank run took place in just two weeks – an unprecedented event for a country where until earlier

Via Reuters: Bundles of yuan notes were stacked high behind the counters of branches of Yingkou Coastal Bank earlier this month, as the northeast China lender fought off a run on deposits while onsite government officials battled rumors of a funding crunch. Yingkou was the latest small bank to have its deposit-reliant funding base undermined

I don’t usually bother with this indicator but it’s worth reporting today: 1 – 10 months, the national scale industrial enterprises realized a total profit of 50151.0 billion yuan, down year on year by 2.9% (on a comparable basis, considering the caliber adjustments under the statistical system, enhancing law enforcement statistics, eliminate duplicate data, enterprise

Here’s your pack of usual Aussie grovellers, at the AFR: Former foreign minister Gareth Evans said he agreed with forecasts that China will have a bigger economy than the US by 2030, although “not in per capita terms” …A former head of the Department of Foreign Affairs and Trade, Peter Varghese, said it was “more

From Dominique Dwor-Frecaut, a macro strategist based in Southern California. She has worked on EM and DMs at hedge funds, on the sell side, the NY Fed , the IMF and the World Bank. Via MacroHive: China’s True Growth Could Be Half What You Think China’s GDP data release always generates great market excitement despite

Via WSJ: Over the weekend, China’s Harbin Bank said it was now under government control. That comes months after Chinese authorities seized control of another small lender, Baoshang Bank, and state institutions took stakes in a third, Bank of Jinzhou. Bank runs have erupted elsewhere. Several other lenders have yet to file 2018 annual reports,

Via Zero Hedge: Confirming that there is something fundamentally broken with China’s debt transmission mechanism and that, by implication, Chinese bad loans are soaring, two weeks after we reported that there was a bank run at Henan Yichuan Rural Commercial Bank which brought the bank to the verge of collapse, the WSJ reported that Harbin Bank, a

The world’s most important market, Chinese property, saw prices moderate again in October with a monthly gain of 0.5% and yearly of 7.8%: The number of cities with stalling and falling prices is still rising at 27 of 70: Lower tier cities are still dominating price gains though they are also slowing fastest: This ought

Via the FT: China’s fixed-asset investment growth has sunk to its lowest level in two decades as the Chinese leadership’s cautious stimulus fails to prop up the domestic economy in the face of a deepening slowdown. … The deepening economic slowdown, intensified by the US-China trade row, has ratcheted up pressure on Beijing to launch

Amazing data again from China in October. All weak: Industrial Production 4.7% Fixed Assets Investment  5.2 % Retail Sales 7.2% All part of the relentless slowing: Under the bonnet, the all important real estate sector continues a near one man band super effort. Sales are still weak: So are developer land purchases though they have

Don’t look to China to save the global economy. October credit is out and was very weak with Aggregate Financing at 619bn yuan and bank lending at 691bn yuan: That is, shadow banking resunmed its contraction: The three month moving average for new loans moved closer to zero: The rolling annual has stalled: Though M2

Via Christopher Balding: China is showing [export] declines across most product types and geographic partners. Chinese imports from the rest of the world fell 5% this year through September. Why is it showing such a divergence from the U.S.? There are three specific reasons: First, the Chinese economy is growing much more slowly than the

Nobody does it like China. Inflation exploded in October: In October 2019 , the national consumer price rose by 3.8% year-on-year . Among them, the city rose 3.5% , the rural rose 4.6% ; the food price rose 15.5% , the non-food price rose 0.9% ; the consumer price rose 5.2% , and the service price rose 1.4% . 1 – 10 on average, the national consumer prices rose year on year by 2.6% . In October , the national

Via Caixin: China’s central bank took another step to lower borrowing costs on Tuesday to encourage lending amid growing downward pressure on the economy, implementing a small cut in the interest rate on the medium-term lending facility (MLF), a key reference used by banks to price their loans. The People’s Bank of China (PBOC) reduced

Via Caixin: The Caixin China Composite PMI™ data (which covers both manufacturing and services) showed a further modest increase in overall business activity during October. At 52.0, the Composite Output Index edged up from 51.9 in September, to post its best reading since April. Data broken down by sector indicated that the stronger performance was