Breaking News
Get 40% Off 0
Is NVDA a 🟢 buy or 🔴 sell? Unlock Now

China disinflation worsens in Nov as CPI hits 3-year low; Stocks tumble

Published Dec 10, 2023 10:00PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
HK50
-0.10%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
USD/CNY
+0.04%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
SSEC
+0.55%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
CSI300
+0.09%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

Investing.com -- China’s disinflationary trend worsened in November, data showed over the weekend, with consumer prices falling at their fastest pace in three years, while producer prices remained in contraction for a fourteenth consecutive month.

The readings spurred increased concerns over the Chinese economy, which saw China’s blue chip Shanghai Shenzhen CSI 300 index sink over 1% to a near five-year low. The Shanghai Composite and Hong Kong's Hang Seng index lost 1% and 2%, respectively, on weakness in mainland stocks.

The yuan shed 0.3% despite a stronger daily midpoint fix.

China’s consumer price index fell 0.5% month-on-month in November, data from the National Bureau of Statistics showed. The reading was weaker than expectations for a drop of 0.1%, and also worsened from a 0.1% contraction seen in October.

Year-on-year, CPI inflation fell 0.5%, missing expectations for a drop of 0.1% and deepening from a 0.2% drop in the prior month. The reading was also at its weakest since September 2020.

The data showed little pick-up in consumer spending, as business activity remained weak and as growing economic risks saw consumers cut back further on discretionary spending.

The decline also came despite continued liquidity injections by the government, and signaled that Beijing needed to do more to shore up economic activity.

Weak business activity saw producer price index inflation sink 3% year-on-year in November, worse than expectations for a drop of 2.8% and the prior month’s drop of 2.6%. PPI inflation also remained in contraction for a fourteenth consecutive month.

Chinese businesses faced continued pressure from weak overseas demand, with a mild pick-up in local orders doing little to offset an overall decline.

The readings contradict a recent statement from People’s Bank of China (PBOC) Governor Pan Gongsheng, who said that inflation was expected to be “going upwards.”

China’s economy has faced consistent headwinds this year, as a property market slowdown and worsening export demand kept a post-COVID economic recovery from materializing.

Moody’s had last week warned of a potential downgrade to China’s credit rating, and also changed its outlook on the country to negative on persistent economic risks.

While Chinese authorities have made continued promises of more stimulus support for the economy, a bulk of this support has consisted of liquidity injections by the PBOC.

Investors have called on Beijing to roll out more targeted, fiscal measures to support the economy. The government has a 1 trillion yuan ($139 billion) bond issuance in the works to spur infrastructure spending.

Upgrade your investing with our groundbreaking, AI-powered InvestingPro+ stock picks. Use coupon INVSPRO2024 to avail a limited time discount on our Pro and Pro+ subscription plans. Click here to know more, and don't forget to use the discount code when checking out!

China disinflation worsens in Nov as CPI hits 3-year low; Stocks tumble
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (5)
Stephen Fa
Stephen Fa Dec 11, 2023 9:10AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
All Gore is a communist bafoon.
TheLast LoserDon
TheLast LoserDon Dec 11, 2023 6:50AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
and someone on here posted last week that they were buying Chinese securities. gl with that.
Philemon Meitamei
Philemon Meitamei Dec 11, 2023 6:27AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
What will be it's effect to the forex market?
Merica Moment
Merica Moment Dec 10, 2023 10:25PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Lower prices are a good thing
ChartsFocusOne CFO
ChartsFocusOne CFO Dec 10, 2023 10:25PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
It’s a double edged sword, as it can be good and it can be bad depending on what industries and sectors you’re looking at. For China, its overall a bad situaiton for their current economy.
ChartsFocusOne CFO
ChartsFocusOne CFO Dec 10, 2023 10:25PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
China is most likely heading towards a bad year for their economy as demand is low with unemployment rising, especially in the younger age demogrpahic.
haitharu Ss
haitharu Ss Dec 10, 2023 10:25PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
they keep saying that and yet they post 5%+ growth..
carlo pietro Corazza
carlo pietro Corazza Dec 10, 2023 10:25PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
it is like blood pressure: too high - bad, zero - you are dead
carlo pietro Corazza
carlo pietro Corazza Dec 10, 2023 10:25PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
suuuure! 5%!
Edward Gerety
EdwardTjGerety Dec 10, 2023 10:16PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The problem with the current administration's disinformation they spew trying to convince us that Bidenomics isn't a complete failure and China's Biden like lies ... what are we suppose to believe?
Ken Roth
Ken Roth Dec 10, 2023 10:16PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
This article concerns China not USA. Bidenomics in USA works fine. US inflation is falling, growth is back, unemployment is at 3.6% and american people are much better off today than 3 years ago. If you actually knew somthing about China you would know that why China is currently having these problems.
me ish
me ish Dec 10, 2023 10:16PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Ken Roth  totally wrong - the US is in the same boat, just lagging by a few months - as the US gets to print its own global money supply, but that only lasts for so long - US is in for a very hard landing within six months - the article also says disinflation, when in fact they mean deflation - they also say the Chinese real estate market is in a slow down - as opposed to an outright crash which is the reality, The US economy relies on the rest of the world to stay up - and the rest of the world is tanking fast,
Mark Jones
Mark Jones Dec 10, 2023 10:16PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
yet the price of food remains high. Gasoline isn't cheap. My electric bill keeps rising despite using less KWH compared to the same time last year. Jan 2020 unemployment was at 3.5 percent just before the SCAMDEMIC. Unemployment November 2023 3.7 percent
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email