The Service Industry Survey Center of the National Bureau of Statistics and the China Federation of Logistics and Purchasing released data on September 30. In September, China's Manufacturing Purchasing Manager Index (PMI) was 51.5%, an increase of 0.5% from the previous month.
Foreign media said that China's manufacturing PMI in September was higher than economists expected.
The Chinese economy accumulated more momentum in September and the pace of recovery accelerated.
China's economy in the third quarter is expected to further "stabilize and accelerate"
The Wall Street Journal reported on September 30 that the support measures introduced by the Chinese government have boosted the manufacturing industry, and international market demand has rebounded partially, and the Chinese economy has accumulated more momentum in September.
The service industry also performed strongly in September. As consumers' willingness to travel and spend has increased significantly, the rebound in transportation, hotels, and catering has boosted the growth of the service industry.
With the promotion of consumption activities in various places, the eight-day National Day and Mid-Autumn Festival holidays will further boost national consumption expenditure.
Lu Ting, chief economist of China’s Nomura Securities, Japan, stated in a report to customers on September 30 that due to the release of consumer demand, the promotion of consumer activities in various places, and the restrictions on overseas travel, the double-holiday holiday may "improve the retail industry." And tourism bring good data".
In addition, Reuters believes that with the continuous recovery of supply and demand and the advent of the traditional production peak season, companies have increased their willingness to purchase and the rate of demand recovery has accelerated, and the import and export index has risen above the line of prosperity for the first time this year.
China's economy in the third quarter is expected to further stabilize and accelerate on the basis of the recovery in the second quarter.
Domestic demand is also showing signs of expansion.
According to PMI, the growth of China's service industry accelerated in September, which further promoted the recovery of consumer demand.
The Purchasing Manager Index is an internationally accepted macroeconomic monitoring and early warning indicator, usually 50% as the critical value of economic strength, higher than 50% reflects economic expansion, and lower than 50% reflects economic contraction.
China's economic recovery helps RMB appreciation boost investment confidence
The recovery of China's economy has also strengthened the confidence and interest of foreign investors in investing in China, prompting the appreciation of the RMB.
"The Wall Street Journal" recently reported that the recent appreciation of the renminbi is mainly affected by investors' optimism about China's economic prospects and China's relatively high interest rates.
The American investment community believes that the strong Chinese economy is part of the reason behind the strengthening of the renminbi.
Quan Dejian, an economist at UOB in Singapore, said: "The situation in China is returning to normal, which bodes well for investor confidence."
According to the US Consumer News and Business Channel (CNBC), Mary Eldos, CEO of JP Morgan Asset and Wealth Management, a subsidiary of JPMorgan Chase, said, “As an investor in today’s world, I don’t know China and I’m not in China. The investment approach is unreliable."
In recent years, foreign resources have continuously poured into the Chinese market, partly because Chinese bonds have been included in various influential stock and bond indexes.
Following the inclusion of Chinese bonds in the Bloomberg Barclays Global Aggregate Index and the JPMorgan Chase Global Emerging Markets Diversification Index, FTSE Russell, the world’s major bond index provider, announced on September 25 that China’s government bonds will be included in the wealthy market from October 2021. Time World Treasury Index (WGBI).