Great news, the Chinese manufacturing economy is contracting at its fastest pace in a year... at least that is the reaction in the Shanghai Composite. After selling off from the open, when HSBC China Manufacturing PMI printed a considerably worse than expected 49.2 - the lowest since April 2014 - stocks took off, energized the future easing expectations that are assured to come from a PBOC now hell-bent on providing speculative tools for any- and every-one just to keep the populace from revolting.

PMI prints the lowest in a year...

Not very pretty under the hood either...

With employment now in contraction for almost 3 years and deflationary pressures evident in input and output prices (both driven by stronger Yuan and over-capacity thanks to easy money mal-investment)

And Stocks take off...

Welcome to the new normal China.

Charts: Bloomberg