Categories: AsiaInternational InvestingManufacturing

Pay Attention to China Now, Before It’s Too Late

Pay Attention to China Now, Before It’s Too Late (Bloomberg)

The results of China’s Purchasing Managers’ Index (PMI) survey for April show that the world’s second-largest economy saw manufacturing fall for the fourth straight month. Their PMI score of 48.1 was larger than March’s 48, but hardly reason to get excited. Analysts attribute much of the weaker performance to sluggish exports and flagging property construction. Chinese leaders are attempting to make the case that the lower score is all a part of their grand plan, but the fact is that the country’s government is going to have to intervene to a greater degree in the economy to rein it in. The resultant volatility in shares of Chinese companies could wreak havoc on investors not paying attention.

Wayne Ellis

Wayne Ellis has been involved in the financial publishing industry for more than 15 years. During that time, he has helped to edit, to market and to launch products and services for Ernst & Young, LLC, Fidelity Investments, Agora, LLC, and Eagle Financial Publications. He currently puts his broad-based experience and industry expertise to use as a contributing writer for Eagle Financial Publications. He also is a graduate of Arizona State University.