China Feb HSBC PMI at 7-month high but more rate cuts seen likely

Beijing

ACTIVITY in China's factory sector edged up to a seven-month high in February but export orders shrank and deflationary pressures persisted, a private business survey showed, adding to the view that yet more interest rate cuts will be needed.

Chinese policymakers are embarking on their biggest easing campaign since the depths of the global crisis as the world's second-largest economy is weighed down by a cooling property market, high debt levels and excess factory capacity.