China Macroeconomics & Academia

Christopher Balding

Macroeconomics

<p>With China devaluing the RMB, PPI remains firmly negative though the decline has slowed.. This negative trend in PPI will inevitably have a damaging impact on the corporate sector which already is highly leveraged and is a major contributor towards NPLs which have become a headache for Chinese banks.</p><p>The PPI for June has turned out to be -2.6%, though above the previous month but still signifying a deflationary environment. The major slump has been witnessed by the investment and fixed asset…</p>

With China devaluing the RMB, PPI remains firmly negative though the decline has slowed.. This negative trend in PPI will inevitably have a damaging impact on the corporate sector which already is highly leveraged and is a major contributor towards NPLs which have become a headache for Chinese banks.The PPI for June has turned out to be -2.6%, though above the previous month but still signifying a deflationary environment. The major slump has been witnessed by the investment and fixed asset…

Dalian Wanda Commercial Properties (1567411D HK)

Haitong Securities Co Ltd (A) (600837 CH)

Chongqing Rural Commercial Bank (3618 HK)

Shanghai Pudong Development Bank Co. (600000 CH)

Poly Real Estate Group Co., Ltd (600048 CH)

Grandjoy Holdings Group Co., Ltd. A (000031 CH)

China Merchants Property Develpmt (200024 CH)

Shanghai Lujiazui Finance & Trade Zone (600663 CH)

China Merchants Securities Co Ltd (A) (600999 CH)

China Pacific Insurance (Group) Co., (601601 CH)

Zhejiang China Commodities City Group Co (600415 CH)

Changjiang Securities Company (000783 CH)

China Merchants Securities Co Ltd (H) (6099 HK)

A Look at PPI and CPI Data From China