Further slowdown in China’s manufacturing activity

Newly released measures of factory activity for November show the Chinese economy is continuing to lose momentum, The Wall Street Journal reported. The Purchasing Managers’ Index slipped to its lowest showing since March, while a private gauge compiled by HSBC and research firm Markit touched a six-month low. Macquarie Group economist Larry Hu commented that “investment in property and manufacturing remains weak … the government is the only one spending.” In the stock market China shares rose on this news as investors bet that the numbers would prompt China’s central bank to further lower interest rates. On November 21, the People’s Bank of China cut the one-year lending rate by 0.4 percentage point to 5.6%.