China's Unexpectedly Lower PMI Signals Greater Pressure-Yicai

China’s July manufacturing PMI unexpectedly fell back below the breakeven 50 and into contraction zero indicating greater downward pressure, as the sporadic outbreak of Covid-19, continued demand contraction and multiple difficulties have put more enterprises in trouble, Yicai.com reported citing Zhang Liqun, analyst of China Federation of Logistics & Purchasing. China should resolutely control all possible new impacts of the pandemic on the production and operation of enterprises, to avoid a wave of collapsed companies, Zhang was cited as saying. The manufacturing PMI may rebound to around 50 in the next few months after falling to 49.0 in July, with accelerated infrastructure investment driving demand, the newspaper said citing analysts.