Xinhua Finance and Market News International announced the September Xinhua Finance/MNI China Business Sentiment Survey. The results of the survey suggest that while overall business conditions remain stable at a relatively high level, companies have reined in production growth and are adding new productive capacity at a slower rate.

While the indexes reflecting current business and financial conditions appear to have stabilized after falling from record high levels in the spring, the indexes for both production levels and productive capacity dropped to their lowest levels ever in the September survey. The index showing expectations for future new orders also hit a record low.

The monthly survey was conducted September 10-24 and comes amid rising interest rates and other measures imposed by the government to slow what some say is an overheating economy.

Since its inception in January, 2005, the survey has accurately tracked and predicted overall Chinese economic conditions, providing important intelligence ahead of government data. The survey has been especially important in indicating turnarounds in the economy, such as last summer's slowdown or the pickup in activity seen since last fall.