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MNI China Press Digest Nov 4: Inflation, Covid, Wealth Growth

MNI (Singapore)
MNI (Beijing)

The following lists highlights from Chinese press reports on Friday:

  • China’s inflation is expected to have eased in October, with the CPI likely to slow to between 2.2% and 2.5% year-on-year from September’s 2.8%, Securities Daily reported citing analysts. The PPI is expected to turn negative. CPI may cool as vegetable prices fell sharply in October, offsetting the impact of rising pork prices, while fuel costs tracked lower global energy prices as Covid outbreaks dampened travel demand and consumer spending, the newspaper said. PPI may record its first year-on-year decline in 22 months, with a possible decline of 1.2% due to a high base effect and lower commodity prices due to slowing global growth, the newspaper said citing Wang Qing, chief analyst at Golden Credit Rating.
  • Local governments have begun to charge and reduce the frequency of nucleic acid testing amid increasing fiscal pressure, Caixin reported. Guiyang city in Guizhou province said people in industries exposed to infections and people who had traveled to other provinces could be tested for free, but others should be tested at their own expense, Caixin said. The city had offered free testing every three or five days over the past two months, costing over CNY200 million compared to total fiscal revenue of CNY59 billion in the first three quarters, Caixin said. Some counties in Guizhou, Sichuan, and Gansu provinces have also cancelled free testing, the newspaper added.
  • Wealth growth among high-net-worth individuals (HNWI) has slowed, with the growth in the number of private banking customers and the average asset size decelerating, The Economic Observer reported, citing the Q3 reports of China Merchants Bank and Ping An Bank, leaders in retail banking. As of September, there were 133,388 private banking customers - retail customers with total assets of over CNY10 million - at China Merchants Bank, a rise of 9.3% over end-2021, and the balance of their total assets was CNY3741 billion, a rise of 10.2%, the newspaper said. The data showed a slowing from previous growths of 20%, the newspaper said. HNWI’s assets are likely to be affected by global market volatility, the continued slump in first- and second-tier city housing markets, and less domestic and global IPOs until next year, the newspaper said.
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