
China's factory activity returns to growth in June, Caixin PMI shows
BEIJING: China's factory activity returned to expansion in June, supported by an increase in new orders that lifted production, a private-sector survey showed on Tuesday.
The Caixin/S&P Global manufacturing PMI rose to 50.4 in June from 48.3 in May, surpassing analysts' expectations in a Reuters poll. The 50-mark separates growth from contraction.
The reading contrasts with China's official PMI on Monday that showed factory activity shrank for a third straight month. But new export orders in both surveys remained in negative terrain in June, suggesting potential challenges for exports in the second half of the year.
"Overall, manufacturing supply and demand recovered in June," said Wang Zhe, economist at Caixin Insight Group.
"However, we must recognise that the external environment remains severe and complex, with increasing uncertainties. The issue of insufficient effective demand at home has yet to be fundamentally resolved."
Overall new orders increased in June after falling in May, with factory bosses citing an improvement in trade conditions and promotional activities to boost sales, the Caixin survey showed.
That drove factory output to the highest reading since November 2024.
Due to higher new work inflows and a reduction in workforce capacity, accumulation of backlogged orders was recorded for the first time in three months.
Employment across the Chinese manufacturing sector contracted in June amid both resignations and redundancies, according to respondents. Some smaller exporters had to sell at a loss or to cut wages and jobs to stay afloat.
Average output charges fell at the most pronounced pace since January, which in turn was supported by lower input costs. Export charges continued to increase, however, driven by rising shipping and logistics costs.
The level of business confidence eased from May and remained below the series long-run trend.
Goldman Sachs economists said the upcoming July Politburo meeting, a key meeting to discuss the economy, is unlikely to result in major stimulus measures, as policymakers appear satisfied with the economic performance so far this year.
In trade developments, U.S. Treasury Secretary Scott Bessent announced last week that the United States and China had resolved issues surrounding shipments of Chinese rare earth minerals and magnets, building on a deal reached in May in Geneva.
China's Commerce Ministry said on Friday export applications for controlled items would be approved in accordance with the law. - Reuters

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


The Star
an hour ago
- The Star
Tech billionaires led by Palmer Luckey to launch new bank to rival SVB, FT reports
FILE PHOTO: Peter Thiel attends the annual Allen and Co. Sun Valley Media Conference in Sun Valley, Idaho, U.S., July 6, 2022. REUTERS/Brendan McDermid/File Photo (Reuters) -A group of tech billionaires led by Anduril co-founder Palmer Luckey are launching a new crypto-focused U.S. bank to fill the void left by Silicon Valley Bank's collapse, the Financial Times reported on Wednesday, citing people familiar with the matter. The group also includes Peter Thiel's Founders Fund and Palantir co-founder Joe Lonsdale, a major donor to U.S. President Donald Trump's 2024 campaign, the report said. Before a March 2023 liquidity crisis, SVB had long been a major primary banking channel for early-stage technology firms and venture capitalists - entities deemed too risky by traditional banks. Many startups struggled to access capital and meet immediate obligations such as payrolls after the bank collapsed. The proposed lender, called Erebor, has applied for a national bank charter and plans to serve technology businesses in areas such as artificial intelligence, crypto, defense and manufacturing, as well as individuals who work at or invest in them, according to its charter application. The application for Erebor, to be headquartered in Columbus, Ohio, outlines a digital-only model, with a secondary office in New York. According to the charter application, the bank will be led by co-CEOs Owen Rapaport and Jacob Hirshman, a former adviser to stablecoin company Circle. Erebor is also planning to hold stablecoins on its balance sheet. A crypto asset class pegged to currencies such as the U.S. dollar, stablecoins are designed to hold a steady value backed by reserves. Fintechs and established financial institutions are increasingly adopting stablecoins to accelerate cross-border payments faster, simplify settlements and expand access to digital financial services. The bank aims to become "the most regulated entity conducting and facilitating stablecoin transactions", according to its charter application. Luckey and Lonsdale are not expected to be involved in the day-to-day management of the bank, the Financial Times report said. Luckey, Thiel, Lonsdale and a spokesperson for Erebor did not immediately respond to Reuters request for comment. (Reporting by Ateev Bhandari in Bengaluru; Editing by Pooja Desai)


The Star
2 hours ago
- The Star
UK top court gives landmark ruling on ex-UBS banker's divorce case
FILE PHOTO: Police officers stand on duty outside the Supreme Court in Parliament Square, central London, Britain December 6, 2016. REUTERS/Toby Melville/File Photo LONDON (Reuters) -The ex-wife of a former UBS executive on Wednesday lost an appeal against her divorce award at Britain's top court, in a ruling lawyers said could have implications for wealthy people who move assets to shield them from inheritance tax. Clive Standish, the Swiss bank's chief financial officer from 2004 until 2007, last year successfully challenged his ex-wife Anna Standish's original 45 million-pound ($62 million) award from what was then a 133 million-pound estate. The case turned on whether roughly 80 million pounds of investment funds Clive Standish transferred in 2017 into his then-wife's name, to be placed in trusts for their children, were matrimonial property. Matrimonial property is generally acquired during the marriage and courts take an equal division as the starting point upon divorce. London's High Court ruled the funds were matrimonial property and awarded Anna Standish 40% of them, but that decision was overturned by the Court of Appeal which gave her a 25 million-pound share of the estate. Anna Standish appealed to the UK Supreme Court, which unanimously rejected her case. Judge Andrew Burrows said that, aside from each spouse's contribution, the key issue was "how the parties have been dealing with the asset". The judge ruled the transfer of the funds into Anna Standish's name was to "save inheritance tax and was for the benefit of the children", making it non-matrimonial property. Clive Standish's lawyer Lucy Stewart-Gould from Stewarts said the ruling showed that "title alone is no determiner of how assets should be divided". Anna Standish's lawyers declined to comment. The case will now return to the High Court to decide if the 25 million-pound share will meet Anna Standish's reasonable needs. Lawyers say the ruling is especially significant for high-net-worth individuals where wealth has been transferred for tax or estate planning purposes. Britain has long been seen as a favourable jurisdiction by less wealthy partners and courts have regularly made awards running into the hundreds of millions of pounds. Will MacFarlane, from the law firm Kingsley Napley who was not involved in the case, said the decision removed "a conflict between IHT (inheritance tax) planning and wealth protection". Sarah Norman-Scott from Hodge Jones & Allen said the Supreme Court ruling "shows a clear steer towards wealth preservation", but added that the decision could impact any divorcing couple. (Reporting by Sam TobinEditing by Mark Potter)


The Star
2 hours ago
- The Star
Nvidia reclaimed market value pole position in June
FILE PHOTO: Nvidia logo is seen in this illustration taken, January 27, 2025. REUTERS/Dado Ruvic/Illustration/File Photo (Reuters) -Nvidia reclaimed the top spot among the most valued companies worldwide in June, as its shares were supported by renewed optimism over its leadership in artificial intelligence and expectations of surging demand for its AI chips. The chipmaker's market value stood at $3.86 trillion at the end of June, about 4.3% higher than Microsoft Corp's $3.69 trillion valuation. However, Nvidia's market value has yet to surpass Apple Inc's record high of about $3.92 trillion set in December 2024. Apple, with a market capitalization of $3.1 trillion, ranked as the third most valuable company at the end of last month. Meta Platforms Inc, Broadcom Inc, and Inc saw their market values rise by 14%, 13.9%, and 7% respectively last month, reaching $1.86 trillion, $1.3 trillion, and $2.33 trillion. The market value of Tesla Inc dropped 8.3% to $1.02 trillion last month, with sentiment hit by CEO Elon Musk's feud with U.S. President Donald Trump. "We believe both Nvidia and Microsoft will hit the $4 trillion market cap club this summer and then over the next 18 months the focus will be on the $5 trillion club ... as this tech bull market is still early being led by the AI Revolution," said Daniel Ives, an analyst at Wedbush Securities. (Reporting by Gaurav Dogra in Bengaluru;Editing by Vidya Ranganathan and David Evans)