Photo: gomattolson on flickr
In October, Chinese inflation hit 4.4%, setting off the all the big tightening fears and a major fall in the Shanghai Composite.The tightening has come. Just this morning, we got a 50 basis point hike in banks reserve requirement ratios.
The new Chinese data is due to come out shortly, and word is it could take another huge leg up.
According to Bloomberg, two Chinese newspapers have said the number will come in at 5.1%, which is probably where the market is looking right now. Thus it’s a number much hotter than this that would probably be worrisome.
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