BNP Partners: China’s inflation slowed more than expected in October increasing concerns over mounting deflationary pressures in the world’s second largest economy. The CPI (consumer price index) measure rose 1.3% compared with the same month a year ago and compared with September’s 1.5% reading. Expectations were for a 1.5% increase, year on year.

The data continues the clear trend of falling producer prices and lukewarm price rises caused, partly, by significantly lower commodity prices but also indicative of what many see as moderating demand growth for goods.

“The data isn’t encouraging by any stretch of the imagination but it isn’t disastrous either,” explained Gerald E. Powers, Chief Investment Officer at BNP Partners. The PBoC has cut interest rates six times since last November and it has also reduced commercial banks’ reserve requirement ratio in a bid to stimulate the economy.

“Despite the central bank’s measures, economic growth continues to slow and this means the government’s official GDP growth target of 7% for 2015 may well be missed,” Powers explained.

The inflation data comes after a slew of October data that disappointed analysts including exports which fell by 6.9% and imports which plunged by 18.8%. Despite the numbers, BNP Partners says it is certain that a turnaround in the economy’s fortunes is at hand.

“There’s clear evidence that the contractions in areas like exports and factory activity are slowing and, in our estimation, we would be surprised if the data didn’t improve markedly by the end of the first quarter of 2016,” concluded Powers.

About BNP Partners:
At BNP Partners, they define effective wealth management as an overall strategy that seamlessly integrates their clients’ personal ROI (return-on-investment) aspirations with their investment management prowess.

Whilst today’s markets can often demonstrate the type of characteristics that have served to hamper the efforts of many traditional investment methodologies to secure the returns they once did, BNP Partners continue to secure exceptional returns for their esteemed clients utilizing a meticulously applied combination of those same traditional methods whilst diligently complementing them with new, pioneering techniques.

Contact BNP Partners:
1/F, Jinzhong Mansion, 98,
Huaihai Middle Rd.,
Shanghai, 200021
Phone: +85258083924
Email: [email protected]
Web: http://www.bnppartners.com