0309 GMT [Dow Jones] A stronger reading in HSBC's initial
manufacturing PMI for July shows that recent stimulus measures have
had some effect, though the economy still needs more policy support
measures, Standard Chartered economist Li Wei says. "Economic growth
is still slowing down but the pace is moderating," Mr. Li says. He
expects an interest rate cut in the third quarter and several cuts in
the bank reserve requirement ratio by the end of the year. The
euro-zone sovereign debt crisis remains the biggest risk for the
Chinese economy, he adds. The preliminary HSBC China Manufacturing
PMI, a gauge of nationwide manufacturing activity, rose to 49.5 in
July compared with a final reading of 48.2 in June. It was still below
the 50 level, however, signaling a contraction in economic activity.
(liyan.qi@dowjones.com)
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(END) Dow Jones Newswires
July 23, 2012 23:09 ET (03:09 GMT)
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