China's Caixin Composite Purchasing Managers Index (PMI) is an indicator of nationwide manufacturing activity, which reflects private sector business development trends. The study conducted by IHS Markit and sponsored by Caixin focuses on smaller and medium-sized companies which may not be covered by official statistics. Readings above 50 indicate that most of respondents positively characterize current business conditions. Readings below 50 mean worsening of business conditions.
Chinese PMI is closely monitored around the world, because China is the second largest economy and the largest metal consumer and producer. PMI growth is an indicator of favorable market conditions and can be seen as positive for the yuan.