2023-12-11 11:50:16
Chinese markets saw a sharp decline on Monday as signs of deflation in the world’s second-largest economy increased, with the main index touching a five-year low. These declines follow a 0.5% decline in consumer prices in November, the largest decline since November 2020, which increased concerns regarding a deepening economic slowdown. Coinciding with the negative trading, the Chinese currency, the yuan, fell to its lowest levels in three weeks once morest the dollar, raising investor doubts regarding the strength of the Chinese economy.
Events are accelerating following signs of deflation mount, as the current declines are linked to the decline in the real estate market and weak domestic demand. The authorities have pledged to increase fiscal and monetary support to stimulate the faltering economy, and as challenges persist, investors remain looking forward to more signals regarding the Central Economic Conference meetings and future growth policies.
In a related context, data from the Chinese National Bureau of Statistics showed that grain production in the country reached a new record level this year, as agricultural grain productivity rose by 1.3% to 695.41 million tons, highlighting the strength of Chinese agriculture despite the current economic challenges.
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