HSBC's China manufacturing PMI drops to half year lows

Analysis that the tightening policy has begun to cool the economy, to help curb inflation risk "Caixin network" (reporter Xu 5th from Beijing), HSBC China Manufacturing Purchasing Managers Index (PMI) fell to 55.4, the lowest in six months.　　On May 4, HSBC said the April PMI value was still above the 50.0 line, indicating further improvements in manufacturing operations.　　Qu Hongbin, chief economist and Asia Pacific director of economic research at HSBC, said the good news is that the expansion of manufacturing activity has slowed slightly, "meaning that austerity starts to cool the overheated economy and helps curb inflation risks in the next few quarters." During the 51 period, the People's Bank of China announced that, since May 10, the renminbi deposit reserve ratio of deposit-type financial institutions has been raised again by 0.5%. This is the third time this year that the reserve requirement ratio has been raised.　　China's consumer price index (CPI) rose 2.4 per cent year-on-year in March, while the factory-manufactured price index (PPI) rose 5.9% per cent year-on-year. According to HSBC PMI data, Chinese manufacturers have significantly increased their factory prices, the biggest increase since March. The rise in raw material prices is one reason for the increase in output price gains.　　At the same time, rising demand has strengthened the pricing power of manufacturers. The data also showed that Chinese manufacturing output continued to grow for 13 consecutive months. The companies interviewed attributed the increase to new business growth brought about by strong market demand. At the same time, export sales continued to rise in April, but growth slowed to its lowest level since July 2009, from close to record highs in March. Overall new orders are growing much faster than the new export business.　　HSBC believes that this shows that domestic demand is the main driver of sales growth in April. HSBC's China manufacturing purchasing managers ' index, jointly prepared by HSBC and UK research firm Markit Group Ltd., sent questionnaires to purchasing directors of more than 400 manufacturers a month.　　Due to differences in sample size, the April HSBC PMI index was different from China's PMI index. The April China Manufacturing Purchasing Managers Index (PMI), released by the China Logistics and Purchasing Federation (CFLP), was 55.7%, up 0.6% from March.　　The index has lasted 14 months and remained above 50%. However, the CFLP index also shows rising pressure on price increases. In its April PMI index, the purchase price index rose 7.5% to 72.6%.　　All 20 lines are above 50%, of which 13 industries are above 70% and 5 are over 80%. CFLP Special analyst Zhang that the PMI index continued to rise in April, mainly due to seasonal factors. In the past year the PMI index showed a higher trend in 3 April. The current export and domestic market demand growth is still a certain degree of instability, to a certain extent still rely on government forces to support, has not yet entered a new sustainable growth track. He believes that the purchase priceMore than 70% of the index is noteworthy, production cost pressure is expected to increase significantly. May 3, China's Logistics and Procurement Association released April China's non-manufacturing Business activity index was 63%, up 4.6% from last month. Non-manufacturing new orders rose 4.1% in the month, reaching 58.7%, the highest since November 2007.