{"id":324036,"date":"2023-07-13T00:51:40","date_gmt":"2023-07-12T16:51:40","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=324036"},"modified":"2023-07-13T01:12:46","modified_gmt":"2023-07-12T17:12:46","slug":"china-deflation","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/china-deflation\/","title":{"rendered":"China on the brink of deflation; what&#8217;s its impact to the Philippines?"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">Analysis and Recommendation<\/h2>\n\n\n\n<p>There&#8217;s trouble brewing in China. China\u2019s Consumer Price Index (CPI) remained unchanged in June, while its Producer Price Index declined for the 6th consecutive month.<\/p>\n\n\n\n<figure class=\"gb-block-image gb-block-image-aed785b8\"><img loading=\"lazy\" decoding=\"async\" width=\"1030\" height=\"1218\" class=\"gb-image gb-image-aed785b8\" src=\"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-content\/uploads\/2023\/07\/Screenshot-2023-07-13-at-12.55.15-AM.png\" alt=\"\" title=\"Screenshot 2023-07-13 at 12.55.15 AM\" srcset=\"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-content\/uploads\/2023\/07\/Screenshot-2023-07-13-at-12.55.15-AM.png 1030w, https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-content\/uploads\/2023\/07\/Screenshot-2023-07-13-at-12.55.15-AM-866x1024.png 866w, https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-content\/uploads\/2023\/07\/Screenshot-2023-07-13-at-12.55.15-AM-768x908.png 768w\" sizes=\"auto, (max-width: 1030px) 100vw, 1030px\" \/><\/figure>\n\n\n\n<p>The problem with low inflation:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>It is indicative of low consumer demand;<\/li>\n\n\n\n<li>It provides little incentive for producers to expand;<\/li>\n\n\n\n<li>Slowing demand points to the possibility that Asia\u2019s economic powerhouse is shifting to a lower growth trajectory.<\/li>\n<\/ul>\n\n\n\n<p>Big banks have actually already started trimming their forecasts of China\u2019s 2023 GDP growth.<\/p>\n\n\n\n<figure class=\"gb-block-image gb-block-image-196a156d\"><img loading=\"lazy\" decoding=\"async\" width=\"1244\" height=\"496\" class=\"gb-image gb-image-196a156d\" src=\"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-content\/uploads\/2023\/07\/Screenshot-2023-07-13-at-12.55.02-AM.png\" alt=\"\" title=\"Screenshot-2023-07-13-at-12.55.02-AM\" srcset=\"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-content\/uploads\/2023\/07\/Screenshot-2023-07-13-at-12.55.02-AM.png 1244w, https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-content\/uploads\/2023\/07\/Screenshot-2023-07-13-at-12.55.02-AM-1024x408.png 1024w, https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-content\/uploads\/2023\/07\/Screenshot-2023-07-13-at-12.55.02-AM-768x306.png 768w\" sizes=\"auto, (max-width: 1244px) 100vw, 1244px\" \/><\/figure>\n\n\n\n<p>What does it mean for Philippine companies?<\/p>\n\n\n\n<p>China remains the biggest market for major exporters from the Philippines, particularly those in the raw materials segment. Coal prices have dropped 65.7% year-to-date (YTD), partially attributable to growing stockpiles in China on the back of weak energy demand from industrial customers. This is not good news for Semirara Mining and Power Co. (SCC).<\/p>\n\n\n\n<p>Despite the surge in demand due to ramped up electric vehicles (EV) and renewable energy (RE) production, base metals are also down YTD, affecting Philippine companies AT, PX, NIKL, MARC, FNI, and ECVC.<\/p>\n\n\n\n<div style=\"height:26px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p style=\"font-size:16px\"><em><em>This report is prepared by PinoyInvestor\u2019s partner broker below. Find out more about <a href=\"https:\/\/www.pinoyinvestor.com\/smartinvestor\/our-partner-brokers\/\">our partner brokers<\/a> and sign up to avail their complete trading brokerage services.<\/em><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Here\u2019s a commentary on an important issue or event affecting the stock market<\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[],"class_list":["post-324036","post","type-post","status-publish","format-standard","hentry","category-special-reports","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/324036","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/comments?post=324036"}],"version-history":[{"count":2,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/324036\/revisions"}],"predecessor-version":[{"id":324051,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/324036\/revisions\/324051"}],"wp:attachment":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/media?parent=324036"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/categories?post=324036"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/tags?post=324036"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}