China's small and medium-sized manufacturing industry saw an expansion in May, with Caixin's purchasing manager's index (PMI) recorded at 50.9 for the month. This was the first time since February that the figure rebounded to above the 50-point level, which separates expansion and contraction in the industry. Qu Qiang, a research fellow at the Beijing Foreign Studies University suggests that the rebound in Caixin PMI may indicate a recovery in demand.