China's services sector activity grew at its slowest pace in nine months in January, Caixin Media and research firm Markit said yesterday, as a flare-up in coronavirus outbreaks weighed on businesses in the world's second-largest economy.
The Caixin/Markit services Purchasing Managers' Index dropped sharply to 52, the lowest since April, from 56.3 in December, while remaining above the 50-mark that separates growth from contraction.
"The services sector's post-epidemic recovery continued, but at a much slower pace," said Wang Zhe, senior economist at Caixin Insight Group, in a statement accompanying the data release.
Chinese services firms remained optimistic about the year ahead but business expectations over the next 12 months fell to the lowest levels in four months.
The chief investment strategist at LGT Bank, Stefan Hofer, said that China is expected to become the world's largest economy by 2040 at the latest. Meanwhile, he expects the economic growth to gradually weaken over time but he is still very optimistic about the China economy in the mid-to-long term.
Bain & Company said demand for wealth management in the Greater Bay Area will grow in the short term.
Less than 20 percent of retail companies in the Greater Bay Area bought cross-border wealth management products and 70 percent of respondents who did not buy any cross-border wealth management products said they expect to purchase related products in the next three years.
