Don’t be fooled – investors are still too upbeat on China

So much for the hard landing theory. China’s manufacturing sector made a strong recovery in March, according to the official data. The purchasing managers’ index – a key indicator of factory activity – came in at 53.1. A number above 50 indicates that the sector is expanding. Economists had expected a reading closer to 51. Sounds like good news. There’s just one problem: it completely contradicts another independent survey that came out earlier last month. So who’s got it right on China?