The HSBC purchasing managers' index (PMI) for the Chinese manufacturing sector indicated a final reading of 50.2 in September this year, stable compared to the final reading for August, as announced by HSBC Holdings PLC on September 30.
According to Hongbin Qu, the HSBC's chief economist for China, in September this year the new export order index surged to its highest level since March 2010, reflecting the recovery of overseas demand. However, the real estate sector remains sluggish, contributing to the slackness of domestic demand. He foresees that in the coming period China's government will follow a loose monetary policy to stimulate the economy.