Sharp rebound in Chinese manufacturing activity

<p>Sharp rebound in Chinese manufacturing activity</p>

Concerns over the state of the Chinese economy have been eased by a new report showing a sharp rebound in manufacturing activity in the Asian nation this month.

According to the preliminary survey by HSBC, its Purchasing Managers' Index rose to 50.1 from 47.7 in July – with any number over 50 indicating growth.

This is the first time in four months that the index has shown the manufacturing industry in China is expanding, perhaps suggesting the country's economy is about to turn the corner.

Hongbin Qu, chief China economist at HSBC, explained measures taken by the government in recent weeks have helped to support the sector.

"This is mainly driven by the initial filtering-through of recent fine-tuning measures and companies' restocking activities, despite the continuous external weakness," he said.

Data recently showed that factory output in the Asian nation rose by almost ten per cent during July, cooling fears of a slowdown in the world's second largest economy.

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