China’s factory rebound
China’s manufacturing PMI jumped into growth in March, expanding at the fastest pace in a year and snapping a two‑month contraction — a surprise pickup for the end of Q1. Beijing’s central bank says it will keep policy “appropriately loose,” and economist Justin Yifu Lin backed the government’s growth targets, citing investments in advanced manufacturing, digital infrastructure and green tech as the engines of resilience — a combination that could stabilize Asian supply chains. (cnbc.com) (marketscreener.com) (news.cgtn.com)
Official data show the National Bureau of Statistics’ manufacturing PMI for March at 50.4, up 1.4 points from February’s 49.0 and above the Reuters-poll median forecast of 50.1. (cnbc.com) The HKUST Li & Fung PMI report recorded output at 51.4 and new orders at 51.6 for March, signalling sector-level expansion in production and domestic demand. (ustlfsci.hkust.edu.hk) New export orders rose to 49.1 in March from 45.0 in February, indicating improvement but still short of the 50 threshold that marks expansion. (cnbctv18.com) The PMI rebound follows readings of 49.3 in January and 49.0 in February, with December 2025 at 50.1, underscoring a volatile quarter for manufacturing. (globaltimes.cn) The People’s Bank of China’s first-quarter monetary policy committee readout said authorities will keep policy “appropriately loose,” flagged “strong supply, weak demand and external shocks” as challenges, and reiterated tools such as reserve-requirement ratio and interest-rate adjustments remain on the table. (money.usnews.com) Economist Justin Yifu Lin told state media and CGTN that China’s 2026 growth target of 4.5–5% is achievable, that investments in advanced manufacturing, digital infrastructure and green technologies are key drivers, and he estimated China could sustain higher potential growth over the 15th Five-Year Plan. (globaltimes.cn) (news.cgtn.com) Market reports cautioned the upside is fragile because higher energy prices and disruptions from the Middle East conflict remain downside risks to supply chains and factory input costs. (bloomberg.com)
