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China economy suffering from government 'over investment'

A private survey is showing a slowdown in China's key manufacturing sector.

The HSBC flash PMI reading shows a reading of 49.5 for December against a 50 reading last month.

Anything below 50 indicates a contraction. It would be a further indication that the world's second-largest economy is slowing down.

The BBC's Leisha Chi spoke to China specialist and independent economist Andy Xie in Hong Kong about what's causing it.

Mr Xie was ranked one of the 50 most influential people in global finance last year.

Watch more reports on Asia Business Report's website

  • 16 Dec 2014
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