The PBOC set its yuan fix 694 pips weaker than markets expected and drained ¥1.41tn in liquidity to slow the currency's climb to a three-year high. Factory data tell two stories: a state-heavy sector still contracting, a private export sector expanding for a ninth straight month.
Advisor Kurt Altrichter frames August's 49.8 factory PMI as a lopsided recovery, with manufacturing and services both still in contraction and Beijing under pressure to stimulate. Source
