China Inflation Data Allows Flexibility but Won't Sway Policy Makers
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iShares FTSE China 25 Index ETF (NYSE: FXI) will open higher on Monday, as shares in China were higher on Monday following positive inflation data. China CPI was reported at 3 percent vs. 3.2 percent expected.
Last week, China's central bank cut the benchmark rate by 250 basis points, and many analysts are expecting the government to provide further measures to support growth there.
"The fact that CPI came down faster than expected allows for more policy flexibility,” Helen Zhu, chief China equity strategist at Goldman Sachs Group Inc., told Bloomberg television. "The trade data is a little bit surprising indeed but we don’t think that will seriously sway the policy makers’ intentions."
Shares in China were higher by 2.44 percent on Monday.
Last week, China's central bank cut the benchmark rate by 250 basis points, and many analysts are expecting the government to provide further measures to support growth there.
"The fact that CPI came down faster than expected allows for more policy flexibility,” Helen Zhu, chief China equity strategist at Goldman Sachs Group Inc., told Bloomberg television. "The trade data is a little bit surprising indeed but we don’t think that will seriously sway the policy makers’ intentions."
Shares in China were higher by 2.44 percent on Monday.
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