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.