In August, China's manufacturing activity showed signs of a slight rebound. The Purchasing Managers’ Index (PMI) for the manufacturing sector, reported by Caixin Media Co and S&P Global, edged up to 50.4, compared to 49.8 in July. This index, reflecting responses from around 400 firms, places a stronger emphasis on smaller, privately-owned businesses.

However, the official PMI, based on data from China’s National Bureau of Statistics, dropped to 49.1 from 49.4, pointing to continued contraction, particularly among large, state-owned enterprises.

It's important to approach this data with caution. China, the world’s largest Keynesian economy, is grappling with deflationary pressures, especially in the real estate sector. Expect significant measures, including easy money policies, as the government attempts to revive its economy in the short term.