China's manufacturing industry surprisingly strengthens for the month of July. The boost suggested that the previous slowdown seen in the world's second largest economy has shifted and may be stabilizing. The improvements in the manufacturing industry will help Li Keqiang, the Premier of the People's Republic of China and party secretary of the State Council, to achieve this year's 7.5% expansion goal. Li Keqiang said that he is aiming to support the economy with reduced fees from exporters and tax breaks for small companies.
"This may well be the beginning of the end of negative data surprises and can start a turnaround of sentiment and expectations for Chinese growth," said Dariusz Kowalczyk, senior economist at Credit Agricole CIB in Hong Kong.
"This kind of strengthening is still very modest given the backdrop that smaller companies are still suffering," said Yao Wei, China economist at Societe Generale SA in Hong Kong, "It's still too early to say the economy is undeniably picking up. It's still a very weak reading compared to historic levels."
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