China's Private Sector Growth Accelerates on Strong External Demand

China's private sector activity gained faster-than-expected momentum in June, driven by a robust increase in external demand. The PMI data released by RatingDog rose to 54.1, surpassing market expectations and extending the expansion streak in the services sector. This development was reflected in equity markets as investors priced in the positive trend in external demand. The increase in orders, particularly for export-oriented firms, was a key factor supporting the overall performance of the private sector. Analysts note that the recovery in global demand is contributing to China's growth dynamics. The rise in the PMI data signaled vitality in non-manufacturing sectors as well as expansion in services. In the markets, the CSI300 index gained value alongside these developments, and exchange rates showed signs of stabilization. As investors closely monitor the strength of external demand and the recovery in domestic demand, sector-based divergences are expected to continue in the coming period. This is not investment advice.