China's factory activity weakened in June to a nine-month low, demand shaken, preliminary investigations revealed that increasing the height of the second quarter slowdown may be sharper than expected risk and improve the central bank easing the heat .
HSBC flash purchasing managers' index rose from 49.2 in May's final value, down from June's 48.3, drifting further away from the expansion and contraction of the 50 division point level. This is the lowest level since September.
"Manufacturing deteriorating external demand, domestic demand slowdown and destocking pressure rise, dragging" said Qu Hongbin, chief China economist at HSBC.
"Beijing prefer to use, rather than stimulus to sustain economic growth, reform, although the reform can improve the long-term growth prospects, they will have a short-term impact is limited, therefore, we expect weaker growth in the second quarter."
China's economic growth slowest pace in 13 years in 2012 and so far this year has been underwhelmed economic data, so that some analysts believe that the country may miss its growth target of 7.5% for this year's warning.
The Australian dollar hit a 33 month low after the latest bad data, wherein the fuel Australia's largest single export market slowdown. Most major Asian stock markets fell more than 1%, Asia (ex-Japan) Index <. miapj0000pus> fell 2.8 percent.
In the survey, a measure of the overall new orders sub-index in June, at 10 months dropped to the lowest reading of 47.1, suggesting that domestic and foreign demand is weakening.
Survey, compile the UK Markit Group Limited, also shows that new export orders weakened further in June, pointing to persistent U.S. economic recovery is still fragmented global headwinds, while the European economy is still shackled by the debt crisis.
Employment sub-index also fell in June - roughly in line with the needs of migrant workers in Chinese cities signs of weakness - although the overall job market is held in the government tried to improve the social safety net.
Weak Q2
Most analysts expect annual economic growth in the second quarter from the first quarter, a 7.7% annual rate of slightly weaker. In the first three months of growth has gone from 7.9% in the previous quarter has slowed, despite the credit boom.
Weak economic data in April and May, has prompted many analysts to cut their forecasts for economic growth in China in 2013.
Barclays Capital (Barclays Capital), annual economic growth is expected to slow to 7.5% in the second quarter, has cut its full-year growth forecast of 7.4% from 7.9%.
HSBC lowered 2013 economic growth forecast to 7.4%, 8.2%, and the prospects for 2014 from 8.4 to 7.4%.
ANZ Bank (ANZ) economists in a research report released Tuesday said that inflation and weak domestic demand means that rapid cooling time is right the central bank cut interest rates to revive the economy.
But the central bank, the last in July 2012 rate cut, looks toward cautious easing may have contributed to the real estate bubble, even if consumer inflation cooled.
May, China's consumer inflation slowed to 2.1% in the three months to the lowest level, but last Tuesday's data show that housing prices rose the fastest pace this year, highlighting the pressure of the difficulties faced by policy makers to support the economy and the property market bubble net.
New and exciting opportunities seem slim, given China's new leaders have taken a slowing economy than their predecessors greater tolerance, because they focus on economic reform, rather than short-term improvement.
Government economists told Reuters reporters that the new leadership will tolerate President Xi Jinping and Premier Li Keqiang as possible before the quarterly growth of 7%, compared with last year seeking to promote economic downturn.
State media quoted Premier Li Keqiang said on Tuesday that the economy remained stable, the pace of expansion is still in the "reasonable range."
"We are able to overcome difficulties and achieve annual economic development mission," Lee said.
This is caused by central banks, financial news, last Wednesday, said a commentary on the capital outflow concerns among a recent cut chance remains low.
The newspaper also suggested to get rid of the central bank should cut banks' reserve requirement ratio (RRR), in order to improve mobility because there are indications that the inter-bank liquidity crunch.
Beijing still nursing the hangover 4 trillion yuan (652.7 billion) economic stimulus plan in 2008-09 during the global financial crisis, the implementation of the depths, fueling the real estate bubble, local government and with debt pile.
HSBC PMI index in advance, which is due to be released on July 1, with the Chinese government's official PMI final reading.
 
 



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