July 25, 2014 (China Knowledge) – The preliminary HSBC China manufacturing purchasing managers' index (PMI), a preliminary gauge of China's manufacturing sector, rose to 52 in Jul this year, 1.3 points higher than the final reading of 50.7 in Jun, according to data released by HSBC Holdings PLC<0005>.
The figure for Jul is the highest level since Jan 2013.
A reading below 50 indicates a contraction from the previous month, while a reading above 50 indicates expansion.
Qu Hongbin, Chief Economist for HSBC China, expects that China will continue its current relatively loose policy stance in next few months to consolidate the recovery.
In Jul, the output index rose 1.0 points from a month earlier to 51.8 and the new order index grew to 53.7 in the month, up 1.9 points from Jun 2014.