There seems to be no respite for Chinese weakness as business barometer by Market News International (MNI) showed further pull back.
- The MNI China Business Indicator showed sentiment fell in September, dropping 8.4 per cent to 51.3, a level not seen since July amid China's stock market turmoil. August's reading was revised to 56, down from the originally-stated 57.1.
- To add to the woe, expectations for future dropped 11.8% to 52.1, lowest reading since 2007.
However, Yuan devaluation by Peoples Bank of China (PBoC) is being seen as positive by companies, which says access to credit has improved by the steps taken by Chinese authorities.
Still analysts believe that would not be sufficient to make turn around in China, which can slow down further.
Capital outflow remains overall concern, which is escaping the economy in more than $100 billion per month.
Positive news is that global leaders and central bankers have realized the impact China might have over global economy as well as financial markets, so there could be more policy coordination among them, improving the health of overall global economy.


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