China May Enter Factory Gate Deflation Earlier Than Expected, Says Barclays’s Chang

The video discusses recent inflation data, highlighting that CPI inflation met expectations while PPI inflation fell more than anticipated, potentially entering deflation. This could impact corporate profits and lead to more easing by policymakers. The trade war is causing Chinese factories to lower prices, potentially leading to closures and increased unemployment. A 6.2% GDP forecast for Q2 is discussed, with potential downside risks due to declining PMI and rising deflationary pressures.

What was the unexpected trend observed in the PPI inflation data?

• It matched the CPI inflation.

• It fell more than expected.

• It remained stable.

• It rose significantly.

How are Chinese factories responding to the trade tensions?

• By expanding into new markets.

• By increasing prices.

• By lowering prices to attract foreign brands.

• By reducing production.

What is the expected impact of the trade tensions on export growth?

• It will become unpredictable.

• It will slow down.

• It will remain unchanged.

• It will accelerate.

What is the forecasted GDP growth rate for Q2?

• 7.0%

• 6.5%

• 6.2%

• 5.8%

What recent data points to a rising deflationary risk?

• CPI data

• PPI data

• Tyson PMI and official PMI

• Export orders