One of three fleeing inmates captured

Police have captured one of the three inmates who escaped a detention center after killing a guard early Tuesday in northeast China’s Heilongjiang Province. Li Haiwei was netted near Yushan village, Yanshou County at around 8:15 p.m. yesterday, said the Harbin Public Security Bureau. More than 1,000 police officers are hunting for the other two, Wang Damin and Gao Yulun.

11 arrested for producing toxic capsules

Eleven people have been arrested for production and sale of toxic capsules in east China’s Zhejiang Province, according to local prosecutors. Police busted the gang, headed by a man surnamed Pan, in late July in Ninghai County together with food and drug administration officials. They seized 440,000 capsules and more than 800 kg of semi-finished products or materials in their rented workshop. In February, the gang began to manufacture capsules with industrial gelatin, which contained above the norm levels of chromium. About 90 million toxic capsules were produced and sold before they were detained.

Services gauges rebound in signal of rebalancing

China’s service industries strengthened in August, contrasting with declining manufacturing gauges and suggesting a transition away from factory-led growth. The non-manufacturing Purchasing Managers’ Index (MXAP) advanced to 54.4 from 54.2 in July, the National Bureau of Statistics and China Federation of Logistics and Purchasing said yesterday in Beijing. A separate services gauge from HSBC Holdings Plc and Markit Economics surged to a 17-month high of 54.1, from 50 in July. Readings above 50 for both gauges indicate expansion.
Chinese stocks added to gains on optimism a rebound in services growth will help offset a pullback in manufacturing and a property slump. China’s weakening real-estate market has weighed on related industries, raising concern the government will miss its expansion target of about 7.5 percent this year. “The economy still faces downside risks to growth in the second half of the year from the property sector slowdown,” Qu Hongbin, HSBC’s chief China economist in Hong Kong, said in a statement. “We think policy makers should use further easing measures to help support the recovery.”