China's Manufacturing PMI at 50.3 in November... Impact of Stimulus Measures

Due to the impact of stimulus measures by Chinese authorities, China's manufacturing Purchasing Managers' Index (PMI) is showing an upward trend.

China's National Bureau of Statistics announced on the 30th that the manufacturing PMI for November this year was recorded at 50.3, up 0.2 from the previous month. A PMI above 50 indicates economic expansion, while below 50 indicates contraction.

China's manufacturing PMI for November reached its highest level in seven months since April, surpassing market expectations of 50.2. The manufacturing PMI had remained below 50 for five consecutive months since May, but returned to expansion territory at 50.1 in October and continued to expand for two consecutive months.

Looking at the detailed indices that make up the manufacturing PMI, the production index rose 0.4 to 52.4 compared to the previous month, indicating accelerated production activities by manufacturers. The new orders index increased by 0.8 to 50.8, and the supplier delivery time index also rose by 0.6 to 50.2.

Earlier, foreign media reported that last month's Chinese PMI showed that a series of stimulus measures were creating a trickle-down effect.

Meanwhile, earlier this month, China announced a plan to inject 10 trillion yuan (approximately 1,937 trillion won) over five years to resolve local government debt issues. Prior to this, China had consecutively introduced stimulus measures including a 0.5 percentage point cut in the reserve requirement ratio (RRR), provision of 1 trillion yuan (approximately 190 trillion won) in long-term liquidity, reductions in policy interest rates and real estate loan rates, and funds to stabilize the stock market.