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CCTV Script 23/10/14

— This is the script of CNBC's news report for China's CCTV on October 23, Thursday.

A SLIGHT bright spot for the global economy..

China's vast factory sector grew in October according to the lastest reading from the Flash HSBC PMI index.

It edged up to 50.4 this month.

One-tenth better than the median expectation.

And TWO-tenths better than last month.

But some analysts say that's not enough to dispel concerns over a cooling Chinese economy.

[TOMMY XIE / Economist, Treasury Research & Strategy] "I think the key challenge will be next year. Because if we look at the details of the PMI number, it's not so positive. We have seen the decline of the new orders, the new export orders. Basically I think the domestic demand is still weak. So I think the investment outlook is not so good. So I think that could pose some challenge for the growth outlook for the first half of next year. I think basically as the China economy is growing much bigger for the past 10 years, I think definitely the influence of the Chinese economy on the global economy is much higher. So the initial stage will be the influence on the commodity prices because we know that in the past decade China was driven by investments so basically we've seen China hunger for all the resources that's why driving up the commodity prices. But I think for the next 5-10 years, there might be some shift in terms of influence. So basically I know we're going to see the focus shift from the quantity of growth to the quality of growth. So eventually we hope China can move to a domestic demand-driven economy. So that means the influence on the global economy, we'll see a little bit of changes particularly in terms of consumption from China."

[Ben Simpfendorfer / Managing Director, Silk Road Associates] "The changes in the indices have been marginal over the last year. anything less than a one point read really doesn't send a strong signal on the economy. We are also facing a two speed economy sector such as the digital sector is providing real growth opportunities and the indices don't pick up on this strength err so I have some concern that they are not providing the same useful reads that they did a few years back Medium term within the next five years the two twin challenges are debt and demographic with debt nearing 300%, the youth population in steep decline. These are headwinds that reforms aren't yet able to overcome and the pace reforms have been insignificant so far at least in our view err and we need to see more in order to really generate those productivity gains that can support growth at least 6% if not higher so these were my immediate concerns. Of course the government could step in with more fiscal stimulus the board but that will grow more taxing over time as more bail outs are needed particularly in the financial sector but also potentially some of the larger state companies."

I'm Qian Chen, reporting from CNBC's Asian headquarters.

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