CCP Congress starts tomorrow - and PMI is the highest it has been for a year?
Tomorrow in Beijing, the 19th Annual China Communist Party Congress begins.
I found it quite interesting (well, perhaps it was more curiosity than interest) that according to official figures released last week, China's Manufacturing PMI and Non-Manufacturing PMI for September were both the highest they have been in a year.
As it is often said, the most important aspect of comedy, is timing.
While 'average 50 city prices' (other than for cucumbers which rose by ~17%) in early October were not demanding, the price of LNG increased by about 17%. This followed a 10% increase the week before.
LNG will probably get a 'pass' as it has become one of China's most important means of production and critical to President Xi's plan to replace coal in non-power sectors, either with natural gas and/or electricity.
That said, with most other prices seemingly undemanding, President Xi walks into the 19th Congress with an air of achievement, ready to shape the next 5 years of development in pursuit of his Two Centenaries objective in 2021 (not far now) and 2049.
Congress will likely provide a feast of opacity and innuendo with real changes occurring months later, but nonetheless it will be interesting to watch.
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