What’s going on here? Despite usually refusing to see eye to eye, two indexes just agreed on one thing: China’s manufacturing sector seems to be back in business. What does this mean? China’s private Caixin purchasing managers’ index (PMI) measures the level of activity in the manufacturing sector. That puts it right at the top of economists’ reading lists: China’s economy relies on manufacturing and exporting, after all. Well in March, the Caixin reading picked up for the fifth month in a row – the longest run in two years. What’s more, the country’s official manufacturing PMI broke its five-month slump, landing at its highest point in a year. That means both the private and public readings came in better than expected, a promising sign after months spent moving in different directions. Why should I care? Zooming out: 99 problems, even if manufacturing isn’t one. China’s government had predicted (or at least, optimistically hoped) that the economy would grow by 5% this year. But while that manufacturing data is moving in the right direction, many experts believe the government will still need to put in a few extra shifts to reach that target – especially because the property market is far from stable. Chinese authorities are worried about foreign trade opportunities, too, now that countries like the US are favoring locally produced products over Chinese ones. That could run down orders on some of China’s biggest sellers – like electric vehicles, for example. The bigger picture: India versus China. China and India’s stock markets moved in tandem for around two decades, up until late 2021. But investors have piled into Indian stocks over the last year, making bets on the country’s young, expanding workforce and leaving China’s languishing stocks on the sidelines. So now, the two markets are less in sync than ever. That said, China’s latest data might turn investors’ heads by promising potential while stocks are still going cheap. | 
