China's exports keep factories on growth path

The mainland's factory sector grew last month after rising foreign orders made up for a subdued home market, a private survey showed. While the data suggests Asia's economic powerhouse is starting to turn the corner, a firm rebound remains elusive.

The final HSBC Purchasing Managers' Index (PMI) edged up to 50.2 in September from August's 50.1, although that was below last week's flash reading of 51.2, with domestic orders proving to be weaker than preliminary estimates suggested.

New export orders picked up the slack, climbing above the 50-point mark separating expansion from contraction to 50.7, from 47.2 in August. After seasonal adjustments, however, the expansion was slight, HSBC said yesterday.

Still, the data should support financial markets and comfort investors eager to see the mainland economy stabilise, even if the revival is likely feeble and perhaps even short-lived.

Qu Hongbin, an HSBC economist, said stronger manufacturing growth was driven by companies replenishing their stocks, albeit slowly.

"Growth is bottoming out on Beijing's mini-stimulus," Qu said, noting, however, that growth in domestic demand was unchanged from August.