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Chinese PMI Rose to 50.2% in June
According to the NBS, China’s official PMI reached 50.2% in June 2022, up 0.6 percentage points from May and just above the threshold for expansion. In terms of the sub-indices, the production, new order and supplier delivery time indices are all above the 50% critical level, while the employee and raw material inventory indicators are still below the threshold. Source: 21jingji (21财经)
Qi’s comments: As noted before, the macro expectations for China have been reset, such that the sequential comps are more important than year-over-year changes. Everyone knows China faces major downside risk to the economy this year. At this point, investors are not so concerned whether the PMI is above or below 50%, as long as it is showing sequential improvements. In this respect, the PMI announcement today is encouraging news.
Global IPOs Waning While China A-Share Offerings Thriving
Turbulent financial markets globally have cast a shadow over the IPO activities. However, the China A-share market continues to crank out a large number of IPOs this year. The A-share IPOs raised over RMB 300 billion (USD 44.81 billion) in the first half of 2022, up 46% year-over-year and making A-share the No. 1 market for IPOs globally. Source: Shanghai Securities News (上海证券报)
Qi’s comments: The domestic liquidity in China is ample, especially now the government is trying to relax the money supply (contrary to what the Fed is doing in the U.S.)
More Regulatory Tightening on Crypto-Currency Trading
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