China's June flash PMI seen to show expansion

[BEIJING] Activity in China's factory sector expanded in June for the first time in six months as new orders surged, a preliminary HSBC survey showed yesterday, offering new signs that the economy is stabilising thanks to Beijing's measures to shore up growth.

Still, many analysts expect that the government may need to roll out further steps in coming months to offset the risks from a cooling housing market and persistent export weakness, after China's premier vowed last week that the economy would not suffer a hard landing.

The HSBC/Markit Flash China Manufacturing Purchasing Managers' Index (PMI) rose more than expected to 50.8 in June from May's final reading of 49.4, beating a Reuters poll forecast of 49.7 and creeping above the 50-point level that separates growth in activity from contraction.