1. Manufacturing (via Bloomberg):

China’s Manufacuring recorded theweakest performance since the global recession eased in 2009,underscoring the case for monetary stimulus as Europe’s crisisweighs on the world’s second-largest economy. A purchasing managers’ index compiled by the ChinaFederation of Logistics and Purchasing slid to 49 in November,lower than all but two of 18 forecasts in a Bloomberg Newssurvey. Readings below 50 signal a contraction. Separate reportsshowed slowing retail sales and an industrial slump inAustralia, which relies on China as its biggest export customer.

China’s economy will slow sharply in coming months,’ saidZhang Zhiwei, chief China economist at Nomura International HongKong Ltd., who correctly predicted the PMI reading. Zhang saidgrowth may slow to less than 8 percent and forecast anotherreserve-ratio cut in January, with stronger policy steps likelyif Europe’s crisis worsens. 

2. Real Estate (via Bloomberg)

China’s home prices fell for a thirdmonth in November as developers started to cut prices to boostsales amid the government’s housing curbs, according to Soufun Holdings (SFUN).
Home prices dropped 0.28 percent last month from October,when they retreated 0.23 percent, according to SouFun, thenation’s biggest real estate website owner. Prices slid in 57 of100 cities tracked by the company, including in all 10 of thecountry’s biggest cities including Shanghai and Beijing, it saidin an e-mailed statement.

The home prices are falling at a faster pace sinceturning points appeared in September,” Shen Jian-guang, a HongKong-based economist at Mizuho Securities Asia Ltd., said byphone today, predicting further declines in prices next year.“The government’s tightening measures on the real estate marketwill continue as bank loans for the sector won’t be looseneddespite the reserve ratio cut announcement last night.”

3. Marc Faber’s gloomy observations (via Business Insider):

“In China, if the economy slows down meaningfully or if there is a crash, it will have a huge impact on the demand from China for raw materials, for commodities.  It will impact Australia, Africa, the Middle-East and Latin America…

“I’m sure the economy (of China) is softer than official statistics would suggest and probably the government will start to print money at some point.  So maybe stocks will rebound here because of money printing, but again, it won’t help the economy….

I live in Asia and all I can say is I observe a meaningful slowdown in business activity recently and increasing corporate earnings that disappoint…

“There’s a huge capital flight [from China], there’s no question about this.”
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