Record Low Inflation Sends China's Stocks Down
Created: 2012-07-09 14:49 EST
A Chinese stock investor is sitting in a stock market. (STR/AFP/GettyImages)
Chinese markets took a hit on Monday after official statistics were released that showed inflation in the country at a two-year low.
The Shanghai Composite Index fell by 2.37%. The Shenzhen Component Index lost 2%. Cement companies, coal producers, securities companies, and banks were among the hardest hit.
The National Bureau of Statistics announced on Monday that the Consumer Price Index—China’s main inflation gauge—fell from 3% in May to 2.3% in June.
Monday’s bad news came on the tails of comments made by Chinese Premiere Wen Jiabao over the weekend that the Chinese regime should, “preset and fine-tune its policies in a more aggressive manner.”
The ruling regime is under heavy pressure to fix the downward motion of the Chinese economy.