JUST IN: China's consumer prices declined at the fastest speed in 15 years in January.
CPI fell 0.8% in January on an annual basis, more than the median estimate for a 0.5% decline in a Reuters poll. This was its fourth straight decline and its biggest drop since 2009. Meanwhile, China’s PPI fell 2.5% in January from a year earlier, the National Bureau of Statistics reported Thursday, slightly better than expectations for a 2.6% decline.
China Gold and Silver Sales Hit Six Year High
Sales of gold, silver and jewelry have been brisk for months, defying wobbles in the Chinese economy centered around the protracted crisis in the property market. Retail salesin December, the last month for which data is available, were at a six-year high. source : bloomberg
China 10Y yield moves below 2.47%, breaking Covid19 lockdown lows.
China 10Y yield moves below 2.47%, breaking Covid19 lockdown lows. With local equity market imploding and real estate in freefall, fears of a Japanese style deflationary spiral are growing. Should China devalue the renminbi ? Chart vy Sylvain Baude, CFA, Bloomberg
BREAKING: WILD morning in Chinese markets. Nearly 30% of all stocks in China have been halted as China's CSI 1000 index slides 8% in a matter of hours.
CSI 1000 was down nearly 9% at one point. The more broadly tracker indexes CSI 300, HSI, HSTECH reversed most losses in the morning Source: Bloomberg, David Ingles
Chinese stocks
Source: Ayesha Tariq, CFA
Shares of Japanese bank Aozora are collapsing.
Stock's on steepest 2-day drop since it became a public company. Why? Bank reported massive exposure to US commercial real estate. Source: David Ingles, Bloomberg
China Factory Activity Expands Again, Private Survey Shows
Source: Bloomberg, C.Barraud
China's holdings of US Treasuries continue to move in a straight line lower
Their holdings of US Treasuries have declined by $300 billion since 2021. Currently, China holds just under $800 billion of US Treasuries, levels not seen since 2009. As interest rates are peaking, the foreign private sector has been slowing purchases. Also, as China faces increasing economic headwinds, it is likely this trend resumes.
