Markets relieved by China PMI

China Services PMI

“Greater volumes of new business underpinned the latest expansion of business activity. Moreover, the rate of new order growth picked up to a solid pace that was the second-strongest in eight months,” the data released by Caixin said.

“Anecdotal evidence suggested that stronger underlying client demand and new customer wins boosted new orders.”

China PMI data tends to focus on smaller and medium-sized companies, whereas official data usually covers big firms.

Mixed picture

The divergent readings on the services and manufacturing sectors won’t necessarily keep the mainland from hitting its “around 7%” target for GDP growth this year.

Concerned by an eventual slowdown, Chinese policy makers have taken several actions: the country’s central bank (PBOC) cut interest rates in June and the reserve requirement ratio (RRR) for some lenders. It was the PBOC’s fourth round of major action since November.