After months of policy moves intended to loosen liquidity conditions and drive investment, the People’s Bank of China is starting to show results in the manufacturing sector which saw a surprising uptick over the previous month. The China HSBC Manufacturing PMI released overnight showed an improvement but nevertheless remains in contraction below 50 threshold, printing at 49.6. Although some suggests it marks stabilization, at the end of the day it is more indicative that manufacturing is not contracting as quickly due to the massive easing efforts undertaken by the Central Bank in recent months. Meanwhile, Chinese stocks are continuing to decline, with certain benchmarks trading in bear market territory with many indices at the lowest levels in 7 weeks. Increased scrutiny of margin in brokerage accounts insinuates that much more downside could be realized after transaction volumes tumbled. The Shanghai Composite continues to swing between gains and losses.