In June this year, the China HSBC Flash Manufacturing Purchasing Managers Index (PMI) increased to 50.8, the highest level of the past six months and the first time it has exceeded 50 this year, up from May's final reading of 49.4, as announced by the HSBC on June 23. In particular, in June the index for new orders rose to 51.8, reaching the highest level of the past 15 months, up from May's final reading of 50. Meanwhile, although the new export orders index indicated a decline, it remained above 50.
Hongbin Qu, the HSBC's chief economist for China, said that the decline in the inventory index shows that China's economy has seen a significant recovery, while he also stated that the Chinese government needs to continue its measures to stabilize the economy and to tackle risks of downward movement in the real estate industry.