In May this year, the China HSBC Flash Manufacturing Purchasing Managers Index (PMI) increased to 49.1, up from April's final reading of 48.9, as announced by the HSBC on May 21.
In May, the HSBC new export orders index declined to 46.8, indicating that overseas demand has slackened. Meanwhile, the production index decreased to 50, the lowest level since December 2014.
According to Hongbin Qu, the HSBC's chief economist for China, the HSBC PMI indicates that the decline in domestic demand has slowed down, while pressures still exist. China has lowered the reserve requirement ratio for Chinese banks and decreased benchmark interest rates, which has exerted a positive impact on the Chinese economy, while Mr. Qu expects that China will implement further monetary easing policies.