BEIJING: China’s manufacturing sector ended its four-month downward trend in March, official data showed Sunday, but exports continued their long slide in the wake of the Washington-Beijing trade war.
The official Purchasing Managers’ Index, a measure of factory activity, rose to 50.5 in March from the previous month’s contraction and three-year low of 49.2.
The growth was likely driven by seasonal factors as factories ramped up production after February’s Lunar New Year holidays.
Some steel mills and coal power plants also increased output as winter smog restrictions end.
Factory output also grew at its fastest pace in six months in March, China’s National Bureau of Statistics reported, but export orders shrank for the 10th straight month amid slowing global growth and as collateral damage in the trade spat the United States.
Over the last eight months, Washington and Beijing have slapped tariffs on more than $360 billion in two-way goods trade, weighing on the manufacturing sectors in both countries.
US and Chinese negotiators wrapped up trade talks in Beijing on Friday ahead of another round next week, when China’s economic tsar Liu He will head to Washington to continue discussions on a possible deal.
China has announced a raft of stimulus measures to cushion the impact from its cooling economy.
Earlier this month, Premier Li Keqiang announced more spending on roads, railways and other big-ticket infrastructure projects, along with tax cuts worth 2 trillion yuan ($297.27 billion) to ease pressure on companies and spur employment.
China announced a lower growth target of 6.0 to 6.5 percent this year, down from 6.6 percent growth in 2018.
China factory activity up after four-month slide
China factory activity up after four-month slide
- The growth was likely driven by seasonal factors as factories ramped up production after February’s Lunar New Year holidays
- China announced a lower GDP growth target of 6.0 to 6.5 percent this year, down from 6.6 percent growth in 2018
UAE raises $150m in first 7-year Islamic treasury sukuk amid strong demand
JEDDAH: The UAE raised 550 million dirhams ($150 million) from its first 7-year Islamic treasury sukuk, part of a dual-tranche auction that drew strong investor demand and underscored growing appetite for dirham-denominated Islamic debt.
The February auction, conducted by the Ministry of Finance in coordination with the Central Bank of the UAE, attracted total bids of 5.88 billion dirhams for securities worth 1.1 billion dirhams, an oversubscription ratio of 5.3 times, according to the Emirates News Agency, also known as WAM.
The issuance comes amid rapid expansion in Gulf debt markets. Fitch Ratings said last month that the Gulf Cooperation Council’s debt capital market is expected to exceed $1.25 trillion in 2026, driven by project financing needs, economic diversification programs and government funding initiatives.
The ratings agency added that the region remains one of the largest sources of US dollar debt and sukuk issuance among emerging markets, with Islamic instruments accounting for more than 40 percent of outstanding GCC debt.
The newly introduced 7-year tranche alone generated demand of about 3.1 billion dirhams — nearly six times the issuance size — highlighting investor confidence in the UAE’s credit profile and the continued growth of its Islamic finance sector.
“The issuance forms part of the Islamic Treasury Sukuk Program for 2026, as published on the Ministry’s official website,” WAM reported.
Participation was strong across the eight primary dealers, covering both tranches maturing in May 2030 and February 2033.
The auction achieved competitive, market-driven pricing, with a yield to maturity of 3.53 percent for the May 2030 tranche and 3.779 percent for the February 2033 tranche, priced below comparable US Treasury yields at the time of issuance.
The sukuk are listed under the UAE Treasury Islamic Sukuk Program on Nasdaq Dubai, improving investor access in the secondary market, according to WAM.
The UAE’s Islamic finance and debt capital markets have continued to strengthen, with Nasdaq Dubai reporting a record year in 2025 as outstanding sukuk listings exceeded $100 billion. The growth was driven by sustained issuance from sovereign, financial, and corporate entities, alongside strong global demand for Shariah-compliant instruments.
The milestone underscores the UAE’s growing role as a regional hub for Islamic fixed-income products and reflects robust investor confidence in the country’s financial system.
