Hong Kong (CNS)- The Purchase Management Index (PMI) for the Chinese manufacturing industry maintained by Hongkong and Shanghai Banking Corporation (HSBC) has reached its lowest point in the past 32 months, bottoming out after a stunning drop from 51 to 47.7 in October.
HSBC's PMI for the Chinese manufacturing industry in November predicted its booming market would slow down and the lazier pace was taken into account to make China's economic policy in 2012, said Qu Hongbin, the chief economist of HSBC China.
He believes the European debt crisis in combination with the dip in domestic housing prices will restrain China's economic growth next year. However, thanks to China's 30 percent increase in fiscal revenue this year, the government will be able to stimulate domestic demand and investment.
The pace of economic growth was faster than we expected in reality,and the monetary policy was loosend up smoothly, said Liao Qun, chief economic strategist at China Citic Bank. More radical adjustments will be carried out in the first quarter next year, he added.
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