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HONG KONG Business conditions for Chinese manufacturers continued to improve in December, with HSBC’s initial Purchasing Managers’ Index rising to a 14-month high of 50.9, according to the survey results released Friday. The reading compares with HSBC’s final PMI print of 50.5 for November. A reading above 50 signals an improvement in activity. HSBC’s initial or “flash” PMI reading is based on responses from 85% to 90% of the total respondents in the monthly survey. Hongbin Qu, HSBC’s chief economist for China, said the improvement in the latest survey results confirmed that China’s “ongoing growth recovery is gaining momentum, mainly driven by domestic demand conditions. However, the drop of new export orders and the downside surprise of November exports growth suggest the persisting external headwinds.”

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