China stocks set for worst day in two months as inflation climbs
China's factory-gate prices grew at the fastest pace in 26 years in October while consumer inflation also accelerated to come above market expectations
China market meltdown | Inflation
Last Updated at November 10, 2021 16:04 IST
Chinese equities dropped, nearing their lowest level in a year, as a pickup in October’s inflation
dampened hopes for easing measures to help economic growth.
The benchmark CSI 300 Index declined 1.4% as of 1:22 pm local time, set for its biggest slide since Sept. 14. Most sector subgauges fell, with materials and consumer shares leading the retreat with losses of at least 2.8%.
China’s factory-gate prices grew at the fastest pace in 26 years in October while consumer inflation
also accelerated to come above market expectations, according to official figures released Wednesday.
Given the higher-than-expected numbers, it looks unlikely that China’s central bank will lower lenders’ reserve requirement ratio in the near term, according to Steven Leung, executive director at UOB Kay Hian in Hong Kong. Cooling economic growth coupled with debt issues in the property sector is also weighing on the market, he added.
High China Inflation
May Hurt Hopes for Further Easing: Analysts
Meanwhile, foreign investors were on track to sell onshore stocks for a fourth consecutive day, dumping over 8.7 billion yuan ($1.4 billion) via trading links with Hong Kong. That is set to be the longest losing streak since April.
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First Published: Wed, November 10 2021. 15:01 IST