China Manufacturing PMI Misses, Tumbles To 7-Month Low

Tyler Durden's picture

If there was any doubt that it was also snowing in China this winter, the February Flash HSBC PMI, which tumbled from 49.5 where it was expected to print, to 48.3, a seven month low, just sealed all meteorological conundrums. And with every sub-index decreasing or deteriorating, it is no surprise that headline index tumbled.

At 48.3, this is the lowest since July of last year with the employment sub-index the lowest since Feb 2009.

The commentary from Hongbin Qu, Chief Economist, China & Co-Head of Asian Economic Research at HSBC, was about as dire as could be:

“February’s flash reading of the HSBC China Manufacturing PMI moderated further as new orders and production contracted, reflecting the renewed destocking activities. The building-up of disinflationary pressures implies that the underlying momentum for manufacturing growth could be weakening. We believe Beijing policy makers should and can fine-tune policy to keep growth at a steady pace in the coming year.”

Markets are not happy that the dream of a sustainable escape velocity growth miracle is not coming true and for now bad news is bad news (as The Fed's minutes suggested they will - just as Yellen stated and the market ignored - stay the course on the taper). USDJPY and the Nikkei 225 has erased all their post-BoJ gains on this news.



USDJPY and Nikkei 225 have erased all gains post BoJ


S&P futures are also fading fast as they recouple with USDJPY as it tests the critical 102 level... 27 points off today's highs

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Soul Glow's picture

Bad news is good news?  Bad news is good news?  Bad news is good news?  Bad news is good news?  Bad news is good news?  Bad news is good news?  Bad news is good news?  Bad news is good news?  Bad news is good news?  Bad news is good news?  Bad news is good news?  Bad news is good news?  Bad news is good news?  Bad news is good news?  Bad news is good news?  Bad news is good news?  Bad news is good news?  Bad news is good news?  Bad news is good news?  Bad news is good news?  Bad news is good news?  Bad news is good news?  Bad news is good news?

flacon's picture

Should be bullish for stocks. I just checked. Stocks are "a different shade of green". Bullish! 

Obchelli's picture

I always wondered How china with manufacturing PMI hovering around and below 50 level (simply shrinking). Regularly posts GDP growth of 7.5%... And they have nerve and are cocky enough to project 7.9% GDP growth for 2014. Just do not get it....  

Soul Glow's picture

Because the whole banking sector is criminal.

Obchelli's picture

Yes I know but market choses to "buy" this lie and all this schmucks on TV with no conscience left in them tell us with stright faces that we are witnessing Economic renaissance worldwide... And stock market is just in first innings of multi year bull market...

Soul Glow's picture

Let them buy their shit paper.

fonzannoon's picture

what is a midget wizard fed chair to do?

FieldingMellish's picture

So naturally... PMs are spanked... because... just... because...

FieldingMellish's picture

Whoops! That reversed gear pretty quick!

Mentaliusanything's picture

Reversed ???  You mean like the German producer price index or the French inflation figure (hint:Swark top right)  Now thats going to leave a skid mark of epic proportions


Oldwood's picture

Expectations must be









Ness.'s picture

We too soon Tes La Lo's

SDShack's picture

Sum Ting Wong

We Tu Lo

Ho Le Fuk

No Mak Shet

kito's picture

You know that shit gets old after a while. Perhaps you can fire up some neurons and humor us with something a little more fucking original. Man you are sum dum ass......

Reckonball's picture

If you like your Sum Ting Wong,We Tu Lo,Ho Le Fuk..You can keep your Sum Ting Wong,We Tu Lo,Ho Le Fuk....see what i did there.....sorry

cassotto's picture

it's the weather stupid!

i_call_you_my_base's picture

48 hours round trip. I was rooting for 24.

GrinandBearit's picture


ES will be green by morning... probably sooner.

Ness.'s picture

It's Wednesday.  That's Prince Spaghetti day here in the USSA.  Hey, even the algos have to eat.  We'll be green after the last cannoli has been consumed.

Obchelli's picture

Sure thing... Every morning I have question - based on f**g what? Just want to look in eyes of the f**ks buying up this market

AdvancingTime's picture

Fast growth tends to mask flaws and weakness within a system, and China has been growing like a weed for years. To make things worse many of the investment decisions were driven by politics. This has created massive overcapacity. Money has been poorly allocated and often shoveled into deep holes like ghost cities and bridges to nowhere. 

The 6.6 trillion dollar spending spree used as stimulus to combat global economic slowdown after 2008 is coming back to haunt China. This has greatly expanded credit and created huge overcapacity during the past five years. A massive debt crisis now looms in the offing. More on the tough spot China now faces in the post below.

surf0766's picture

Mr. Yellen will print. The world will then finally realize QE/ZRIP failed and the dollar sells off to zero.

Nobody For President's picture

Maybe your paper dollars will sell off to zero, but my silver ones won't.

Atomizer's picture

Didn’t Obama tell Reggie he is coming home for a fudge packing fitness ? PMI? We all need to break a new taxpayer condom wrap open. Celebrate the miserable communist dependent souls.  We know your running out of repeated ideas..


Carry on comrades.

marginnayan's picture

Heeeee.....Heeeeee....mighty futures down 8+ on the news. Keep pounding this QE pig, Bears.

mobydick's picture

So the gang of ??? (can't remember how many princelings and pincelingesses there were) who stole and parked US$4 trillion in the Caymans knew what they were doing.

mendigo's picture

Normalized adjusted harmonized sterilized securitized disinflationary pressures with risk to the upside due to weather as reported by the NAR

Bunga Bunga's picture

Get over it, Chinese are becoming a consumer economy, don't need to produce so much anymore, they will buy Teslas and stuff now.

Wait What's picture

watched Titanic for the 1st time last night. disaster porn almost as great as the above summary chart. can't decide which is more entertaining: watching 1/2 hour straight of a ship sliding into the Atlantic and people freaking the fuck out the whole time, or watching central banks try to shovel paper into every leak to keep the global titanic from its inevitable destination. good times, either way.

The Most Interesting Frog in the World's picture

Xi Jinping: "pour me another drink and go build another fucking skyscraper!"

yrbmegr's picture

Hurry up with that war.

syntaxterror's picture

Dayyyyyum, dat Polar Vortex done made it over to Chinatown.