steven is head of investment strategy at shk private and he joins us now from hong kong. what was your reaction to the numbers? >> we weren't really excited or surprised by improvement in the pmi. when you look at other economic indicators reported early in the month, there has been pretty consistent and broad based improvement in terms of the chinese economy. that has been the result of the chinese government's policy activism since mid-april. in terms of equity markets, we believe improving pmi will continue for the next couple of months so analysts will be revising positively in terms of the earnings estimates ask that should be positive for the equities markets. >> so is pmi an accurate reflection of the state of manufacturing in china? >> no, not necessarily. recent growth picked up in the past couple months in china has been driven by a more government infrastructure investment projects. so that has been the growth driver. and some have criticize that had as the old tricks and believe this will not be sustainable in a long run. the traditional manufacturing sectors