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China manufacturing growth slows in August, surveys show
A labourer works on the assembly line at a clothing factory in Bozhou, east China's Anhui province, on May 22, 2014.Beijing - Growth in Chinese manufacturing activity slowed in August, two closely watched surveys showed Monday, losing momentum as a declining property sector and waning stimulus effects weigh on the world's second-largest economy. Analysts said the result indicated China's economic recovery was being stunted by problems in the property sector - where new home prices posted their fourth consecutive month-on-month decline - as well as the weakening impact of stimulus measures taken to boost growth. "The weak PMI data suggest that China's shallow growth recovery has started to lose momentum, likely because of the ongoing property market correction and a decline in the efficacy of policy easing due to structural problems in the economy," economists at Nomura International said in a report. China's economic growth accelerated to a higher-than-expected 7.5 percent in the second quarter, up from 7.4 percent in the previous three months. China in March set its annual growth target for this year at about 7.5 percent, the same as last year. "We think the economy still faces considerable downside risks to growth in the second half of the year, which warrant further policy easing to ensure a steady growth recovery," Qu Hongbin, HSBC chief economist for China, said in the bank's announcement. Economists have worried that a potential destructive bust in housing prices could dent economic hopes of China, a key driver of global and regional growth. An independent survey of China's housing prices showed the fourth month-on-month fall in a row, but August's decline was slower than July's, as more local governments loosened purchasing restrictions to boost sales.

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