The adjustment is serious and is a reaction to the eruption of China’s triple bubble: credit, real estate and stock markets.
Flash manufacturing PMI for August and IMF decision bring more negative news for China.
LONDON | By Christian Keller at Barclays | China’s official manufacturing PMI was flat at 51.1in September, slightly below Barclays’ forecast (51.3), but marginally above consensus of 51.0. The data reaffirmed the trend of improving external demand, but soft domestic demand. The China PMI data had a limited market impact, with local markets closed for National Day while AUD fell following the weak sales outcome.