The latest data shows that China's Caixin manufacturing PMI rose to 50.3 in October from 49.3 in September, returning to the expansion range.

October survey results:

• New orders grew at the fastest pace in four months, indicating improving domestic demand.
  

• However, new overseas orders are still falling, although the decline has slowed.
  

• Manufacturing production accelerated due to the increase in new orders.
  

• Business optimism about future prospects rose, with the optimism index reaching its highest level in five months.
  

• Despite optimism, employment levels are falling at the fastest pace in nearly 18 months, and manufacturers remain cautious about costs.
  

• Average input costs increased for the first time in three months due to rising raw material prices.
  

• Selling prices rose for the first time since June.
  

On the eve of the release of manufacturing data, next week's meeting of the Standing Committee of the National People's Congress (NPCSC) is highly anticipated, and the market is generally expected to introduce new stimulus measures for consumption to promote China's economic development.

Experts 'views on China's manufacturing industry

Dr. Wang Zhe, senior economist at Caixin think tank, said: "Overall, manufacturing supply and demand both increased in October, prices rose, companies took the initiative to replenish inventories, and logistics delays were obvious.Business optimism improved.However, weak external demand and declining employment remain issues of concern.”

Dr. Wang also talked about the impact of September's policy measures: "In late September, the Political Bureau of China pointed out that the economy was facing new challenges and emphasized the need to focus on key areas and launch new policies.What followed was the implementation of a series of new policies.Caixin Manufacturing PMI survey data showed that market demand was stable and optimism improved, showing early signs of policy impact.”

However, employment trends in the manufacturing PMI survey highlight the difficulties of China's labor market and may further affect consumer demand.

Market response to Caixin Manufacturing PMI

Affected by the Caixin Manufacturing PMI, the Hang Seng Index climbed from the day's low of 20,355 points to 20,536 points.On November 1, the Hang Seng Index rose 0.61% to close at 20,442 points.

In the foreign exchange market, the Australian dollar/U.S. dollar (AUD/USD) also responded positively to the data, rising to a high of 0.65777 US$0.65716.However, this data failed to fully reverse the previous decline.On November 1, the AUD/USD fell slightly by 0.12% to US$0.65732.