China’s manufacturing PMI for February is expected to reach an historic low of 38.8. The impact of the virus outbreak will see PMI drop further than the previous low in Q4 2008, according to the latest report from ANZ Research.
However, the biggest risk facing the economy is the breakdown of the liquidity chain. We estimate a shortfall of CNY2.6 trillion in cash flow in the corporate sector.
The virus outbreak has caused lack of cash revenue given the demand shock; mismatch of accounts receivable and payable; and insufficient cash to service loan and interest payments.
If the authorities cannot address the cash flow issue effectively, the outcome for bad loans, defaults, bankruptcy, and employment will be severe, the report added.


South Korea Factory Output Misses Forecasts in November Amid Ongoing Economic Uncertainty
Oil Prices Stabilize at Start of 2026 as OPEC+ Policy and Geopolitical Risks Shape Market Outlook
Best Gold Stocks to Buy Now: AABB, GOLD, GDX
Asian Stock Markets Start New Year Higher as Tech and AI Shares Drive Gains
U.S. Stock Futures Slip as Year-End Trading Turns Cautious
U.S. Dollar Slides Toward Biggest Annual Loss Since 2017 as 2026 Risks Loom
Trump Delays Tariff Increases on Furniture and Cabinets for One More Year
South Korea Factory Activity Returns to Growth in December on Export Rebound 



