With the pronounced slowdown in Europe and other regions around the world, China is seeing its manufacturing coming into a hard-landing. While the reports of the service sector is holding up well, both the ISM and the HSBC reports show further contraction.

This will surely cause some confusion as the markets are hoping (praying) for additional stimulus and the contradiction between the manufacturing and non-manufacturing reports will not provide any clarity. Will Wen decide to add stimulus even though there are mixed signals?