Beijing: Despite the lifting of the prolonged lockdown in China due to Corona, manufacturing activities in the country did not pick up in July. According to the report released by China's Government Statistics Agency on Sunday, manufacturing activities in China remained sluggish due to weak global demand and strict measures being taken to control the corona.
Due to this the manufacturing PMI fell from 50.2 in June to 49 in July. A PMI figure falling below 50 is a sign of decline. In front of new orders, exports, and employment, the pace of the Chinese economy is also slowing down.
The direct effect of reduced manufacturing activities can come in the form of a cut in employment opportunities. At the same time, the real estate sector is also in trouble. Real estate plays an important role in China's $17.5 trillion economy.
The Chinese bank has distributed maximum debt to the companies in this sector. The reputation of the Evergrand Group has been eroded by many real estate companies. Due to this, there is a lot of pressure on the banks and people are not able to withdraw money.