Core Viewpoint - The economic landscape in China is showing signs of expansion, with manufacturing PMI improving, while corporate profitability remains under pressure [1] Group 1: Manufacturing Sector - The Caixin China Manufacturing PMI for June recorded at 50.4, an increase of 2.1 percentage points from the previous month, aligning with April's level [1] - The manufacturing sector is experiencing a notable recovery, which is significantly higher than the decline observed in the services sector [1] Group 2: Services Sector - The Caixin China Services PMI decreased by 0.5 percentage points to 50.6, marking the lowest level since the fourth quarter of 2024 [1] Group 3: Composite PMI - The Caixin China Composite PMI rose by 1.7 percentage points to 51.3 in June, indicating a return to the expansion zone [1] Group 4: Economic Outlook - There is a resurgence in supply and demand, but employment continues to decline, and while corporate costs remain stable, sales prices are on a downward trend [1] - Business confidence is waning, and there are concerns about increased economic downward pressure in the second half of the year, highlighting the importance of the implementation of previous incremental policies and the potential for policy intensification [1]

Core Viewpoint - The recent tariff war has negatively impacted economic sentiment, leading to a decline in corporate expectations to historical lows [1] Economic Indicators - In April, the Caixin China Manufacturing Purchasing Managers' Index (PMI) recorded 50.4, a decrease of 0.8 percentage points from the previous month, marking the lowest level in three months [1] - The Caixin China Services PMI also fell by 1.2 percentage points to 50.7, the lowest since the fourth quarter of 2024 [1] - The overall Caixin China Composite PMI decreased by 0.7 percentage points to 51.1 in the same month [1]