HSBC China manufacturing purchasing managers index at two-year high

CHINA's industrial production grew in January at its fastest pace in two years following share slowdown due to a decline in export orders to its key trading countries of Europe and the US, according to HSBC manufacturing purchasing managers index (PMI).

The PMI increased from 51.5 to 51.9 in January driven by increasing export orders from new markets in the final quarter of 2012 increasing its GDP to 7.9 per cent. All readings above 50 indicate the expansion of economy, a number less than that is a sign of contraction.

The latest data from HSBC points to recovery supported by analyst prediction of GDP rising to eight per cent into 2013.