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China HSBC PMI: Downward revision hints growth momentum lost - Nomura

FXStreet (Bali) - According to Nomura, Tuesday's revision lower in China HSBC PMI, is in line with their view that growth momentum has continued to lose steam in September.

Key Quotes

"The HSBC final PMI was revised down to 50.2 in September from the flash number of 50.5; it was flat from the August reading of 50.2. The revisions made for the HSBC final PMI were in line with our view that growth momentum has continued to lose steam in September."

"We believe the main drag was the property market correction, which we expect to last into 2015 (China’s property market blues, 26 September 2014). The official PMI, to be released tomorrow, should provide more colour, and we expect it to drop to 50.6 in September from 51.1 in August, which should prompt further policy easing."

"We maintain our real GDP growth forecast of 7.2% y-o-y in Q3 with risks skewed to the downside, down from 7.5% in Q2; we then expect it to rebound to 7.6% in Q4."

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