CHINESE MANUFACTURING SURGES TO 18-MONTH HIGH

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HSBC China flash PMI, a gauge of manufacturing conditions, climbed to an 18-month high of 52 in July, from 50.7 the previous month.

This beat expectations for a rise to 51. A reading below 50 indicates contraction.

New orders and export orders climbed at a faster rate.

"Economic activity continues to improve in July, suggesting that the cumulative impact of mini-stimulus measures introduced earlier is still filtering through," Hongbin Qu, HSBC China economist said in a press release.

"We expect policy makers to maintain their accommodative stance over the next few months to consolidate the recovery."

The recent surge in Chinese credit has prompted some economists to say that growth has again become Beijing's top priority.

Here's a breakdown of the sub-indices:

Markit Economics/HSBC

Here's a look at the improvement in Chinese manufacturing.

Markit Economics/HSBC