China factory growth hits 5-month high: Caixin

China's manufacturing activity expanded for a second straight month, according to a private survey, a further sign of stabilisation after Beijing unleashed a stimulus package to shore up the economy.

The Caixin manufacturing purchasing managers index rose to 51.5 last month, the highest since June, according to a statement released by Caixin and S&P Global Monday. The expansion was much greater than the 50.6 forecast and accelerated from 50.3 in October.

The finding showed Chinese exports have continued to power the $18 trillion economy's uneven recovery, although US President-elect Donald Trump has threatened to impose tariffs that could decimate trade between the countries. Official measures of activity in November showed a slight pickup in the manufacturing sector, while a gauge of construction and services unexpectedly fell back to the 50-mark that separates contraction from expansion.


"Front-loading may continue to support manufacturing activities for a couple of months until tariff materializes, which could take place fairly quickly given the mechanism in place in the US," said Michelle Lam, greater China economist at Societe Generale SA.

Customers' stockpiling helped new orders in November to rise at the quickest pace since February last year, with output price inflation at a 13-month high, according to the Caixin poll.