Chinese manufacturing activity jumps

china

The Chinese manufacturing sector expanded faster than economists expected in August.

Official Chinese PMI came in at 51.7, higher than the 51.3 consensus of analysts polled by Reuters.

The reading was also higher than July’s reading of 51.4.

There has been concern that high levels of debt and efforts to control a rampant property market would begin to curtail growth in the world’s second largest economy.

Miners Rally

China is the world’s largest consumer of base metals and FTSE 100 miners reacted positively to the release with Antofagasta, Rio Tinto, KAZ Minerals and Anglo American rising between 2%-5% in early trade on Thursday.

Despite the initial exuberance in markets, many analysts were still pessimistic about Chinese economic growth saying tighter controls from the authorities would ultimately dent growth and possibly incite financial instability.

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