The increased industrial funding costs of China are likely to have a toll on eroded profit margins. Manufacturing production and revenues are projected to be under stress given sluggish domestic demand and the constant slowdown in total investment growth. We have already forecasted a lot of shortcomings and risky economic numbers for Chinese growth as China is scheduled to release the official manufacturing PMI for April on 1 May.
The GDP growth slowing to 7% as Chinese Manufacturing sector likely still under pressure will set off more policy easing to avert crumbled growth. We consider policy measures, especially monetary policy easing in the near future may have to gradually boost to the economy.
We therefore expect the manufacturing PMI to recover in H2-2015. We expect it to have moderated to 50.0 from 50.1 in March, reflecting still-weak underlying momentum in the manufacturing sector. In the chart, it can easily be figured out how import volumes are directly proportionate to industry production. This explains us to make out the slump in raw material costs have had the adverse impact on its currency, and it's likely to persist. CNY to dollar trading at 6.1935 (22:46 GMT).