China tries to fight inflation without slamming economy
BEIJING: Robust Chinese imports and exports data helped spur Beijing to put the screws on the country's banks yet again Friday to combat rising inflation, but the report also eased investor concerns of a hard landing next year.
"Markets are worried about liquidity tightening, not really economic growth," said UBS economist Tao Wang.
China's Shanghai stock index rose 1% Friday. But it's fallen nearly 9% in the past month and 13% this year as Beijing's inflation-fighting mode has been a drag.
China's consumer inflation data will be released on Saturday. November's CPI is expected to climb to 5.1%, up from October's 4.4%, a 25month high.
While some analysts point to rising food prices as the main source of China's creeping inflation, more worried ones point to the economy's soaring money supply, which may be harder to tame. -Reuters