Chinese Stocks Surge After Lowest Manufacturing PMI In A Year


Great News, the Chinese manufacturing economy is contracting at its fastest pace in a year… at least that is the reaction in the Shanghai Composite. After selling off from the open, when HSBC China Manufacturing PMI printed a considerably worse than expected 49.2 – the lowest since April 2014 – stocks took off, energized the future easing expectations that are assured to come from a PBOC now hell-bent on providing speculative tools for any- and every-one just to keep the populace from revolting.


PMI prints the lowest in a year…


Not very pretty under the hood either…


With employment now in contraction for almost 3 years and deflationary pressures evident in input and output prices (both driven by stronger Yuan and over-capacity thans to easy money mal-investment)


And Stocks take off…


Welcome to the new normal China.


Charts: Bloomberg