China tries to fight in­fla­tion with­out slam­ming econ­omy

The Pak Banker - - International3 -

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

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