Overnight data from China showed two starkly different pictures of Chinese manufacturing. The HSBC Manufacturing PMI released twice monthly has been firmly in negative territory since the beginning of March, highlighting concerns that the government is not doing enough to avert a slowdown in the economy. Meanwhile, the official Manufacturing PMI figure remains expansionary despite printing in contractionary territory for February and March. According to the numbers, the official PMI expanded from 50.2 versus 50.1 in the prior month. Nevertheless, Chinese stocks are swinging back to the upside after the last two-day rout, which saw the Shanghai Composite fall over 10%. Today’s recovery in equity valuations has seen the benchmark rally almost 4.50% as optimism returns to financial markets despite the pessimistic fundamental outlook. Optimism has come on the back of purported talks to boost the program assisting local governments with managing bad debt.