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        China equities closed 1.8% lower


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China shares fell on Monday, with the Shanghai Composite Index posting its biggest decline in more than four months. Investors are still worried about China's economic situation in the face of uncertainty in the US China trade agreement.
CSI300 fell 1.76 percent to 3902.98, the biggest decline since August 5. The Shanghai Composite Index. SSEC fell 1.83 percent to 2909.97, its worst performance since July 8.
China's industrial producer price index (PPI) fell the most in more than three years in October, with manufacturing hit by falling demand and a Sino US tariff war. This increases the likelihood that Beijing will introduce stimulus measures.
In contrast, the sharp rise in pork prices led to a year-on-year increase in CPI in October, which exceeded expectations and reached a new high in nearly eight years. Some analysts said the surge in CPI could be a source of concern for policymakers considering stimulus to boost demand.
China Merchants Securities wrote in the report that according to the moderate reduction of the central bank's medium-term lending facility (MLF) earlier this month, it can be judged that the rising inflation has constituted some resistance to China's monetary policy easing.
There is another uncertainty in the Sino US trade agreement.
U.S. President trump said Saturday that the U.S. - China trade talks are "very smooth," but only if they are beneficial to the United States will the United States reach an agreement with China.


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