Lan Shen, economist at Standard Chartered, points out that their latest SMEI survey shows no improvement in China’s SME performance in June.

“The headline SMEI – based on our monthly survey of more than 500 SMEs nationwide in China – eased to 54.0 in June from 54.7 in May, with the growth momentum indicator (new orders minus finished-goods inventory) moderating for a third straight month. Weakening domestic demand took a toll on SMEs’ sales and production activity, while their investment appetite remained sluggish. We expect heightened counter-cyclical policy measures introduced since late-June to support domestic investment and consumption in H2-2019. Export-oriented SMEs showed resilient performance in June, mainly due to front-loading of exports, though their expectations on sales and profitability were dampened by the unresolved US-China trade conflict.”