23rd September 2014 - Positive Chinese Economic Data

Sept. 23, 2014 - PRLog -- Stock Port Associates is one of the world’s largest and most established offshore investment firms operating within a tax-favorable jurisdiction. Whether it’s dealing with new regulations, setting up an offshore presence, attracting new investors or identifying independent directors, we have the expertise to assist you.

23rd September 2014 - Positive Chinese Economic Data

Major Asian Indexes:

Hang Seng          23,956.19 (+0.00%)

SSE Comp          2,309.62 (+0.86%)

Nikkei          16,205.90 (-0.71%)

Finally there has been some good news out of China yet markets were unable to react as positively as they could have due to new airstrikes taking place in Syria by a coalition of Arabian nations.

Going against forecasts, the HSBC Flash Manufacturing PMI came in above expectations today giving the markets a breath of relief after months of concern that China's manufacturing sector was losing momentum faster than many thought originally.

Predicted to be 50.0, down from Augusts' 50.2, September's Flash PMI came in at a positive 50.5. Well above forecasts after an especially poor August for manufacturing. The data actually shows an increase in the 3rd quarter with an average rating of 50.9 against the 2nd quarters 49.6. A significant gain.

The news came at the same time that manufacturing employment fell to a 5 and a half year low.

What this could signify is an increase in Central Bank activity as they look to stem the shortfall in growth and attempt to reach the 7.4% GDP increase they have as their target.

The Central Bank could look to reduce rates on certain lending such as mortgages and also may look to extend the recent program whereby they lent capital to the 5 largest state banks at reduced rates based on the funds are re-lent to businesses. The five state banks will receive 100bn Yuan over the course of 3 years. The $81bn pledge was seen as a similar response carried out by the ECB and as a guide, this was a fund that was under subscribed. We are yet to hear whether the case has been the same in China.

This is good news for the region and if data returns to positive territory for the world's second largest economy, everyone should benefit in the near future.

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