After an almost unprecedented surge in credit (total social financing) and over-invoicing enabled a bounce in China’s PMI data in December, both Manufacturing and Services data tumbled in January, confirming South Korean trade data. While manufacturing continues its contraction (dropping to 49.4, the weakest since Aug 2012), it is non-manufacturing’s plunge from a one-year high “transition is happening, see” narrative to practically the weakest print since 2008. But apart from that all that, China is “stabilizing” according to officials.
China’s economy is improving under medium-to high-speed growth, according to a People’s Daily commentary written by Zhong Sheng, who wasn’t identified.
There is consensus in the international community that long- term basic element in the Chinese economy is still strong: commentary
NOTE: Zhong Sheng is a homonym in Chinese for “voice of China” and commonly used in commentaries by the People’s Daily, which is published by the Chinese Communist Party
Does this look like stabilization to you?
Of course – if we just wait around long enough (like 45 minutes) Caixin’s PMI will print and explain all this ‘craziness’ away.
Time for some more devaluation – which is exactly what China’s CDS is implying.
via Zero Hedge http://ift.tt/1nXdg8Y Tyler Durden