So, after $1 trillion in new credit, numerous RRR cuts, a devalued currency (great for exporters, right?), and the domestic exuberance of a housing bubble, China's economy (manufacturing and non-manufacturing) collapsed to cycle lows (weakest since Dec 08) in February. Of course, this plunge after January's bounce is all being blamed on the Lunar New Year… and in fact, according to The NBS, manufacturing confidence is increasing (seriously that's what they said!)
- *CHINA MANUFACTURING PMI AT 49.0 IN FEB. (49.4 EXP.)
- *CHINA NON-MANUFACTURING PMI AT 52.7 IN FEB.
Does this look like "confidence" to you?
So to be clear – China Services PMI went from the highest since June 2014 to the lowest since Dec 2008 in one month.
It appears a trillion dollars doesn't go as far as it used to.
One can't help but wonder, following these comments from PBOC's Chen…
- *WE HOPE TO COMMUNICATE CANDIDLY WITH FED: PBOC'S CHEN
- *CHINA, U.S. CENTRAL BANKS SHOULD IMPROVE COORDINATION: CHEN
- *STRONG DOLLAR CYCLE MAY TRIGGER CRISIS IN EMERGING MKT: CHEN
Whether this is some Fed-targeted dumping of bad data to allow turmoil and force The Fed to relent.
via Zero Hedge http://ift.tt/21xQ1nS Tyler Durden