China’s Factory Activity Seen Contracting For Fifth Straight Month

One America News ^ | 26 Sep 2019 | Stella Qiu and Ryan Woo

[BeauBo]

China’s factory activity is expected to have contracted for a fifth straight month in September, a Reuters poll showed, adding to the country’s economic woes as Beijing remains locked in an escalating trade war with the United States... fuelling expectations the authorities will have to roll out more stimulus measures to avert a sharper slowdown...

The slowdown in the manufacturing sector which saw double-digit on-quarter deceleration in revenue, profits and sale prices, according to a third-quarter survey of thousands of Chinese firms by China Beige Book International (CBB) published this week.

That was despite borrowing at the highest level nationally for a second consecutive quarter.

“Either the sector as a whole is in clear distress or a large proportion of firms should be failing,” the CBB said in the report...

Some analysts say the room for policy easing has become quite limited as debt concerns mount and investment returns fall.

“We believe markets have been placing too much confidence in the speed, scale, scope and efficacy of Beijing’s stimulus measures,” said Nomura analysts in a note on Wednesday.

“Conventional easing measures may not be able to solve many of the problems resulting from the non-market-based policy measures and interventions imposed on the economy over the past several years.”

[BeauBo]

"Top U.S. and China trade negotiators are expected to meet in Washington in about two weeks"

The traditional tools available to the ChiCom Government to juice up growth have become less effective after long-term overuse, "as debt concerns mount and investment returns fall."

[DoughtyOne]

I could be wrong, but that may be China’s collective government sphincter that is contracting for the fifth straight month.

A few more months, and that could become serious.

[BeauBo]

“may be China’s collective government sphincter that is contracting for the fifth straight month.”

The seat of Government can be seen being sucked up...

[BeauBo]

For your interest.

[DoughtyOne]

“:^)

[USS Alaska]

I could be wrong, but that may be China’s collective government sphincter that is contracting for the fifth straight month.

Are chinese sphincters horizontal, and how does the ta_nt fit?

[Phil DiBasquette]

[DoughtyOne]

All above my pay grade...

[DannyTN]

1. Never take "china is failing" without a lot of salt. They've been singing that song for 10 years.
2. When your customer is the US and you don't have much of a domestic consumer base, you leave yourself vulnerable.
3. Stimulus depending on type either helps investment or helps your consumer base. Nothing to invest in if you lost your customer. And China doesn't have a big consumer base.
4. China's stimulus lowers the yuan to help lower price and boost sales to foreigners.