Caixin Services PMI Edged Higher In July

The China Caixin services PMI printed better than expected for July, 54.1, versus 52.4 expected (although this was based off only a small number of estimates from the sell-side). The prior read was 53.9. The July composite index still fell though to 51.9, versus 52.5 prior. This owed to slump in the manufacturing PMI from earlier int he week (49.2 from 50.5).

• Given downbeat China data outcomes, relative to expectations, any signs of data resilience will be welcome by the market.
• Per Reuters reports - "Companies said improved operating conditions, greater client numbers and new product releases had boosted sales at the start of the third quarter, according to the private survey. The sub-index of new business picked up from June, but was still below the series average."
• "Analysts said summer travel could have helped with related consumption, although sales of some big ticket items remained tepid, making July's picture of retail sales mixed."
• "A sustained rise in expenses and improved demand led to a further increase in prices charged by companies, although some said competitive market pressures had limited their pricing power."
• The initial risk on market reaction hasn't seen much positive follow through though. USD/CNH dip sub 7.1900 has been supported, while HK equities have given back post data gains.