China PMIs point to tepid recovery in H2

June's official PMI released this morning was unchanged from May at 50.2. HSBC/Markit PMI which is more skewed towards smaller enterprises, stayed below the 50-mark for the fourth straight month at 49.4 from 49.2 in May. 

Overall, the tone remains one of a tepid recovery in H2, which is consistent with the weak industrial production numbers and slow project approvals. This could imply even more monetary stimulus to nurture a stronger recovery.