China Stocks Fall on Deflation Concern as Coal Shares Decline



China’s stocks fell for a second day, paring the benchmark index’s gain this week, as a steeper decline in producer prices heightened concern economic growth is slowing.


The Shanghai Composite Index slipped 0.1 percent to 3,290.87 at 10:06 a.m., extending yesterday’s 2.4 percent loss. The producer-price index slumped 3.3 percent last month from a year earlier, the National Bureau of Statistics said, compared with the median projection for a 3.1 percent decline. Consumer prices rose 1.5 percent, matching the median estimate.


The Shanghai gauge has rallied 1.7 percent this week, advancing for a ninth week, the longest stretch of gains since May 2007. For the year, the gauge has surged 61 percent, the best performer among 93 global indexes tracked by Bloomberg, amid speculation the government will further ease monetary policy to support growth. It’s valued at 12.4 times 12-month projected earnings this week, the highest level since April 2011, according to data compiled by Bloomberg.


Source : Bloomberg