China’s contracting purchasing managers’ index data for May also confirms the negative sentiment on manufacturing, which should not be surprising given that industrial profits have plummeted in 2023, with close to 20 per cent negative growth in April. But there’s reason to remain wary amid the central bank’s easing stance, as the China’s public debt has been increasing rapidly, hitting 97 per cent of its gross domestic product — and still excludes state-owned enterprises’ debt because of data constraints. Instead, the stock markets of China and Hong Kong are flunking, as a result of negative market sentiment.