China Business News: October PMI Data Shows Impact of Pandemic

This week’s highlights:

• The Covid-19 pandemic and the tightening of prevention and control measures have had a far-reaching negative impact on Chinese economy.  October’s services PMI data from respected analytical resource Caixin showed a 0.9 point decrease since September. The index was only at 48.4 in October, falling below the contraction range of 50 for the second consecutive month, and the lowest result since June this year. (The United Morning Post)
• Earlier this week the Party Committee of the People’s Bank of China issued a document on “Studying and Implementing the Spirit of the Twentieth Party Congress”. The document calls for the PBOC to understand the significance of the 20th CPC National Congress, and to comprehensively study and implement the “spirit” of the decisions made at the Congress. In practice, that is likely to be interpreted as a call to contribute to efforts to construct a modern socialist country with a healthy financial structure. (Sina Financial)
• China’s top economic planner, the National Development and Reform Commission (NDRC) plans to restore market confidence and stabilize economic growth by unveiling a three-year action plan to turn an economically vital region – the Yangtze River Delta – into an internationally competitive business environment. Further measures are also expected to enhance regional interconnectivity and dismantle market barriers. (South China Morning Post)