Difficulty accumulates for China’s economy

It’s not only on the financial markets that a global crisis could be looming for China. There is also indication in the figures that something’s wrong. According to a PMI survey and for the fifth consecutive month, China’s July 2015 factory activity shrunk the most in 2 years. Caixin/Markit China Manufacturing Purchasing Managers’ Index (PMI) dropped to 47.8, the lowest since November 2011, from 49.4 in June 2015. Immediately after the publication, Asian and Australian financial markets reacted negatively to the news which is fueling growing fear that China’s economy could be slowing more than expected towards its “new normal” and that China’s financial markets for which government’s support has been unexpectedly massive so far could tumble again over the next few weeks.