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 is the expected change in PPI prices this month?

• No change

• A 1% drop

• A 1% increase

• A 2% increase

What is the anticipated PPI inflation rate by the end of the year?

• Around 10%

• Around 8%

• Around 2%

• Around 5%

How is corporate sector profitability related to PPI?

• It is inversely related

• It is directly related

• It fluctuates independently

• It is not related

What is the primary policy priority of the Chinese government?

• Increasing exports

• Achieving growth targets

• Reducing inflation

• Reducing unemployment

What structural issue is the Chinese government focusing on?

• Improving education

• Increasing foreign investment

• Enhancing technological innovation

• Deleveraging