China's Flash Manufacturing PMI Signals Further Expansion in October

China's flash manufacturing PMI came in at 50.9 in October vs the official reading of 50.2 in September. Readings above 50 signal expansion. The rise was mostly driven by the backlog of work and employment components (though the employment component remains below 50), but new export orders registered a small gain as well. We expect the pace of gains in the PMI to moderate or even reverse in the months ahead as the government reins in credit growth.