StanChart's Ding Sees China CPI, PPI Diverging

The video discusses the trends in China's Producer Price Index (PPI) and Purchasing Managers' Index (PMI), highlighting a significant drop in PPI inflation from 7.6% to 6.6% in April. It suggests that PPI inflation has peaked and is expected to continue falling due to high inventory and softer demand. The discussion also covers the impact of PPI on corporate profitability and the Chinese government's focus on deleveraging while maintaining a growth target of 6.5%. The video concludes with insights into the government's policy priorities and the potential challenges of the deleveraging process.

What challenges does the Chinese economy face in the short term due to deleveraging?

What are the government's priorities regarding economic growth and deleveraging?