China CNY

China HSBC China Services PMI

Impact:
Medium
Source: Markit Economics

Latest Release:

Date:
Big Surprise:
-1.12
| CNY
Actual:
51.8
Forecast: 52.92
Previous/Revision:
53.5
Period: Jun
What Does It Measure?
The HSBC China Services PMI (Purchasing Managers' Index) measures the economic health of the services sector in China, focusing on key areas such as activity level, employment, new orders, and business expectations. A PMI reading above 50 indicates expansion in the services sector, while a reading below 50 signifies contraction, making it a critical national indicator of economic activity.
Frequency
The HSBC China Services PMI is released on a monthly basis, typically on the first business day of the following month, providing preliminary estimates of the services sector's performance.
Why Do Traders Care?
Traders closely monitor the HSBC China Services PMI because it offers insights into the broader economic landscape of China, influencing financial markets by affecting the valuation of the Chinese yuan and the performance of Chinese equities. Stronger-than-expected results can be bullish for the yuan and markets, while disappointing figures may cause bearish sentiment, impacting investment decisions and forecasts.
What Is It Derived From?
The PMI is derived from a monthly survey of purchasing managers in the services sector, where respondents assess variables such as new orders, business activity, and employment levels. The results are compiled using a weighted diffusion index, enabling analysts to gauge overall sector performance through aggregate data.
Description
The HSBC China Services PMI reflects the current state and future prospects of the services sector by comparing month-over-month performance through a single composite index. It is often viewed as a coincident indicator, providing timely insights into the economic climate and potential shifts in consumer behavior, thereby painting a clearer picture of the economic outlook.
Additional Notes
The HSBC China Services PMI is frequently compared with the Manufacturing PMI to gauge overall economic condition trends and sector performance. This index typically serves as a coincident indicator, helping assess the impact of policy changes or global economic events on China's economy.
Bullish or Bearish for Currency and Stocks
Higher than expected: Bullish for CNY, Bullish for Stocks.

Legend

High Potential Impact
This event has a strong potential to move markets significantly. If the 'Actual' value differs enough from the forecast or if the 'Previous' value is significantly revised, it signals new information that markets may rapidly adjust to.

Medium Potential Impact
This event may cause moderate market movement, especially if the 'Actual' deviates from the forecast or there's a notable revision to the 'Previous' value.

Low Potential Impact
This event is unlikely to affect market pricing unless there's an unexpected surprise or a major revision to prior data.

Surprise - Currency May Strengthen
Actual deviated from Forecast on a medium or high impact event and historically could strengthen the currency.

Surprise - Currency May Weaken
Actual deviated from Forcast on a medium or high impact event and historically could weaken the currency.

Big Surprise - Currency More Likely To Strengthen
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely strengthen the currency.

Big Surprise - Currency More Likely To Weaken
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely weaken the currency

Green Number Better than forecast for the currency (or previous revise better)
Red Number Worse than forecast for the currency (or previous revise better)
Hawkish Supports higher interest rates to fight inflation, strengthening the currency but weighing on stocks.
Dovish Favors lower rates to boost growth, weakening the currency but lifting stocks.
Date Time Actual Forecast Previous Surprise
Jul 03, 2015
51.8
 52.92
53.5
-1.12
Jun 03, 2015
53.5
 52.6
52.9
0.9
May 06, 2015
52.9
 53.17
52.3
 -0.27