Greater China Banks Daily: September Manufacturing PMI recorded 50.1%, up 3bps MoM; MoF deploys RMB 550bn in unused local debt quota

UBS Greater China Banks Daily. According to NBS data, the September Manufacturing PMI edged up 0.3pp to 50.1%, mainly driven by robust factory output as the production sub-index rose to 51.7%. Large enterprises stabilized at 50.6%, while medium and small firms remained in contraction at 49.7% and 48.9% respectively. The non-manufacturing PMI rebounded 1.2% to 50.2%, with construction business activity up 3.4% to 50.3% and new orders jumping to 45.7%; the Composite PMI recorded 50.7%. The MoF authorized the use of RMB 550bn in previously unused local government debt quotas, of which RMB 300bn in general bonds will be directed entirely to county-level governments and RMB 250bn in special-purpose bonds will be allocated to regions with immediate project financing needs with a tilt towards major economic provinces;