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Why bad news from China could be good news for investors

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The latest flash manufacturing PMI from China only underlined the sense of decline in the world's second largest economy. The actual number was 49.2 versus the previous reading of 50.7. This week China's biggest banks will report 2014 profits and they are expected to be in single figures. The official GDP target has been lowered to around 7%, the days of double digit growth well and truly over.    

The gathering pace of negative numbers can be seen as good news for investors because the doom and gloom can only add to pressure on the People's Bank of China to take more action, that's according to Kay Van-Petersen, Asia Macro Strategist with Saxo Capital Markets.