Happy days are here again for China’s manufacturers, and they may be here to stay. The Purchasing Managers’ Index, which tracks manufacturing activity, grew for the fifth straight month, from 53.2 in June to 53.3 in July. However, analysts say the growth is mostly driven by the policy stimulus package, so naturally people wonder what will happen when Beijing turns off the money shower. And the question that naturally follows is, when will China stop stimulating? Beijing’s answer is cagey; as soon as the US does! Hopefully this does not imply that Beijing has adopted a competitive drinking-game approach to managing its economy.
Speaking of drinking games, China’s property developers are back out on the town, and by town, we mean Hong Kong. As many as 12 property developers are now looking to IPO on Hong Kong’s stock exchange, encouraged by the newly festive attitude of Chinese home buyers, who have driven home prices in Beijing and Shanghai back into the stratosphere. However, what policy giveth, policy taketh away, and Beijing is already making noises about popping re-foaming housing bubbles.