Beijing (AsiaNews) - Chinese manufacturing activity contracted in August 2015 at the fastest pace in three years. The figures, just released, confirm fears of a general slowdown in the Chinese economy. Asian markets are reacting negatively, even if they appear to be at least containing the damage. The manufacturing data reflect those of industrial activity, which is also contracting nationally.
The final reading of the PMI index in August 2015 stood at 49.7 points against the 50 of July 2015. Figures below 50 indicate contraction. A different indicator - the private Caixin / Markit – was even lower with 47.3 points: if confirmed, it would be the lowest figure since 2009.
After the release of the data Chinese markets reacted negatively. On opening Shanghai lost about two and a half points, but managed to recover some of the losses registered at the start of trading: after losing 3.73, now its trading at a loss of 1.06%. In Shenzhen, the second largest Chinese market, after being set back by 3.79%, the index is now losing 2.71%.
The central government has reacted to this general contraction of the economy by lowering of the forecast economic growth for 2015 to 7 percentage points, the lowest figure in the last quarter century.
But many economists believe that the real level of growth of the country, the locomotive of the Asian continent, is much lower. Comparing the cooling of domestic demand and exports with the overproduction of industries, in fact, experts believe that an economic bubble capable of crippling the nation is going to burst.
Added to the steady decline in these data is the continual collapse of the Stock Exchanges in Shanghai, Shenzhen and even than that of Hong Kong. To try to limit the damage, Beijing approved a generous injection of liquid capital but so far to little effect. To the great Chinese analyst Willy Lam believes that the government‘s only real concern is keeping power in the hands of the party, at the expense of ordinary citizens.