China's tightening policy is effective, HSBC report

China News Agency, Shanghai, May 4 (Xinhua)--The growth rate of Chinese manufacturing output in April has fallen to its lowest level since July last year, a report released today by HSBC.　　Qu Hongbin, HSBC's China chief economist, said the modest slowdown in China's manufacturing activity during the month was good news because it meant that the government's tightening policies were starting to cool the overheated economy, helping to curb inflation risks in the next few quarters. The report said the growth in new manufacturing operations in China in April had been the lowest in 5 months.　　China's manufacturing export sales continued to rise during the month, but growth slowed to its lowest level since July 2009, from its near-all-time record in March. In April, China's manufacturers significantly increased the price of their products, the biggest increase in 3 months.　　HSBC believes the increase in output prices is mainly a reaction to the widespread price rises in raw materials. According to the report, the latest figures show that China's overall new orders for manufacturing in April grew much faster than the growth of the new export business, suggesting that domestic demand was the main driver of the month's sales growth. Finish)