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TD Securities analysts note that the  China’s official NBS manufacturing PMI underwhelmed at 50.1 in April (market 50.1, TD 50.9), while the non-manufacturing PMI came in at 54.3 (market 54.9).

Key Quotes

“Consequently the composite PMI slipped from 53.4 in April from 54.0 in March. Most components fell, with notable falls in output (52.1) and new orders (51.4), albeit remaining in expansion territory.”

“There was some gains, with new export orders and imports rising, but still below the 50 boom/bust level, suggesting a small improvement in the trade outlook. Output prices rose, likely positive for profits as input prices slipped.”

“It also appears that targeted lending to smaller enterprises is beginning to pay off, with small enterprises rising to 49.9, just a touch under the expansion level. Similarly the April Caixin PMI also came in below expectations at 50.2 (market 50.9, TD 51.2).”