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China September factory activity seen growing slightly: Poll

The official manufacturing Purchasing Manager’s Index (PMI)is expected to stay at 50.1 in September, the same as the August reading, according to the median forecast of 34 economists polled by Reuters. A reading above 50 indicates expansion from the previous month.

September 29, 2021 / 08:05 AM IST
The chemical stocks have had a phenomenal run in the last one-year period. There are 23 stocks on BSE from the sector that have doubled investors' wealth in the last one year. In fact, six stocks from the list have gained between 300 percent and 500 percent each, according to ACE Equity data. We considered only stock with a market-cap of Rs 1,000 crore. Meanwhile, in the special chemicals sector, seven stocks have gained over 40 percent. The research firm JM Financial is bullish on 4 out these 7 stocks.

The chemical stocks have had a phenomenal run in the last one-year period. There are 23 stocks on BSE from the sector that have doubled investors' wealth in the last one year. In fact, six stocks from the list have gained between 300 percent and 500 percent each, according to ACE Equity data. We considered only stock with a market-cap of Rs 1,000 crore. Meanwhile, in the special chemicals sector, seven stocks have gained over 40 percent. The research firm JM Financial is bullish on 4 out these 7 stocks.

China’s factory activity likely grew only slightly in September, a Reuters poll showed on Tuesday, as high raw material prices and power cuts continued to pressure manufacturers in the world’s second largest economy.

The official manufacturing Purchasing Manager’s Index (PMI)is expected to stay at 50.1 in September, the same as the August reading, according to the median forecast of 34 economists polled by Reuters. A reading above 50 indicates expansion from the previous month.

China’s economy rapidly recovered from a pandemic-induced slump last year, but momentum has weakened in recent months, with the vast manufacturing sector facing heightened costs and production bottlenecks, and more recently, electricity rationing.

China is in the grip of a power crunch as a shortage of coal supplies, toughening emissions standards and strong demand from manufacturers and industry have pushed coal prices to record highs and triggered widespread curbs on usage.

"Unless the power issues are resolved and production restrictions are lifted, efforts by Beijing to ease policy will have a more muted impact on economic output. Thus, power shortages raise the possibility that any economic rebound will be delayed," said analysts at BCA Research on Tuesday.

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China is also dealing with ongoing small-scale coronavirus outbreaks in the southeast province of Fujian and the northeastern province of Heilongjiang.

Higher raw material prices, especially of metals andsemiconductors, have also pressured profits. Earnings at China’s industrial firms in August slowed for the sixth straight month.

The official PMI, which largely focuses on big andstate-owned firms, and its sister survey on the services sector,will both be released on Thursday.

The private Caixin manufacturing PMI will also be published on the same day. Analysts expect the headline reading will rise to 49.5 from 49.2 the month before, remaining in contraction.
Reuters
first published: Sep 29, 2021 08:07 am

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