China factory surveys show economy weakening, as Beijing steps up support

AP Business Writer

The latest surveys of Chinese factory managers show the economy weakening in recent weeks, as the government ratchets up stimulus. The Caixin purchasing managers survey indicated new manufacturing orders fell at the fastest pace in two years in September. An official survey showed a less drastic decline but marked a fifth straight month of contraction. Chinese stock markets surged Monday, reflecting enthusiasm over a barrage of policy measures announced in the past last week, including lower interest rates and smaller down payment requirements for mortgages and a cut in required bank reserves. The Shanghai Composite index surged nearly 6% and a benchmark for the smaller market in Shenzhen rocketed up almost 11%.