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China’s October PMIs will likely improve

In China, the NBS and Caixin PMIs is likely to post modest gains, driven by improving activity in construction and orders related to the upcoming holiday season. 

On the macro policy stance, the weak underlying growth and rising deflationary pressures point to more easing measures in the coming quarters to support growth stabilization. 

"One remaining 50bp RRR cut is likely in Q4 15 and two more RRR cuts in H1 16, given the expectation of persistent capital outflows. Also, two more 25bp benchmark rate cuts aree expected in H1 16", says Barclays. 

The recent long-term project financing provided by China Development Bank will also help boost investment and support growth. 

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