CHINA'S manufacturing activity rose in June to the highest level in more than two years, as companies rushed to fill orders before export rebate cuts, according to Hong Kong-based CLSA Asia Pacific Markets. The CLSA Purchasing Managers' Index climbed to 55 from 54.1 in May, the highest reading since March 2005.

The figure was released in an e-mailed statement. The government from Sunday cut rebates on 2,831 exports to stem the flood of cash from overseas sales, ease friction with the United States and Europe, and curb energy consumption. China's trade surplus soared 73 percent in May from a year earlier to US$22.5 billion.